ajtj99's Market Pulse

[ajtj99]

OEX is a bit troubling here for the bullish case, as it has now dropped below the proposed neckline of a complex H&S top formation at 570. The implication could be that an orthodox H&S top is instead in play, and the neckline could serve as resistance going forward.

That would mean we're in a 3 down as opposed to a C down. Still too early to decipher, but the 3 down scenario is getting more credibility the lower we go.

http://stockcharts.com/def/servlet/SC.web?c=$oex,uu[e,a]daclyiay[pc9!c13!c20!d20,2!c50!c200!b50!b200...

The H&S top target is about 552 on the OEX. We'd likely head down there if this is indeed a H&S top that has neckline resistance.