Monday, January 23, 2012 2:00:17 PM
SPY potential H&S pattern
The short term uptrend has potentially been broken, and price retreated to support which has held several times. A break of that support around SPY 131.00 will have created a head and shoulder pattern with objective of SPY 129.75 area.
One of the short term cycles is 5-7 days, and this is day#5, so I would expect 131 to fail, and price to try for the 130 area. As long as OBV holds up above the levels of 3.5 days prior, this is still the beginnings of a BULL mkt with obj IMHO of SPY 140.
The short term uptrend has potentially been broken, and price retreated to support which has held several times. A break of that support around SPY 131.00 will have created a head and shoulder pattern with objective of SPY 129.75 area.
One of the short term cycles is 5-7 days, and this is day#5, so I would expect 131 to fail, and price to try for the 130 area. As long as OBV holds up above the levels of 3.5 days prior, this is still the beginnings of a BULL mkt with obj IMHO of SPY 140.
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