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Monday, May 14, 2012

Running on Empty


With this morning's continuing fallout from the latest JPM debacle, we should see the completion of the smaller H&S pattern we've been watching.  The neckline is around 1338, so look for a bounce around there on the opening.

This plays out well with the analog I first posted back on April 9 [see: Analog Watch] and charted on the 10th and 11th [Analog Details.]  At the time, SPX had peaked at 1422, one point above a Butterfly target identified on March 29 [see: All the Pretty Butterflies] and was on its way to our 1357 downside target (tagged later that day.)

The subsequent completion of the right shoulder at the Bat pattern .886 target of 1415 [see: A Swing and a Hit] got the downside started on May 1, and it's been all gravy since then -- complete with the completion and back test of the larger H&S and now, completion of the smaller H&S pattern.

As we discussed last Thursday [see: Still on Track], the latest H&S pattern targets 1275, but I believe it'll be a challenge getting below 1292.  Remember, the targets I originally laid out on May 6...

1 comment:

  1. I was looking at my flash-crash 2010 60min chart...looking for similarities with the current pattern.

    Is this Monday, like Monday May 3'rd? Hmm.  May'4 2010 had a big gap lower..then mostly trundle sideways for 2 days, but slowly slipping lower.

    Just something to consider.