Monday, March 25, 2019 3:01:32 PM
$SPX holding below its SMA(20),
If $SPX ends the day that way and looks weak tomorrow, expect it to test SMA(200) which, by the way, is still above SMA(50), but not by much, and SMA(100).
So ... it's reasonable to think price tests the bottom (solid orange) SR level within a few days then bounces back up to attempt a re-test the dashed SR line then reverses back down to the solid SR line again. Bingo! ... an H&S short-term top on Daily Intervals is complete. That could break downward and start an early-stage test of the neckline of the Weekly H&S pattern that is already constructing the right (downhill) side of its right shoulder.
That weekly pattern has been taking over a year to set up, so it looms large on monthly intervals. The last time the market was stuck in a pattern was a flat pattern from late 2013 through early 2016.
If $SPX ends the day that way and looks weak tomorrow, expect it to test SMA(200) which, by the way, is still above SMA(50), but not by much, and SMA(100).
So ... it's reasonable to think price tests the bottom (solid orange) SR level within a few days then bounces back up to attempt a re-test the dashed SR line then reverses back down to the solid SR line again. Bingo! ... an H&S short-term top on Daily Intervals is complete. That could break downward and start an early-stage test of the neckline of the Weekly H&S pattern that is already constructing the right (downhill) side of its right shoulder.
That weekly pattern has been taking over a year to set up, so it looms large on monthly intervals. The last time the market was stuck in a pattern was a flat pattern from late 2013 through early 2016.
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