Coming into the week there is now a very nice H&S formed and testing the neckline late Friday afternoon. On a break down the target would be 2088. Will the bears deliver? Well they’ve blown a few nice setups lately, nothing as nice as this but we’ll see. SPX 5min chart:
All of the six indices below have now broken support from the last serious low and there are obvious reversal patterns of most of them now. Screen 3x 15min SPX INDU TRAN:
NDX was the last index to break rising support on Friday and a nice looking double top had formed, but that has broken up since the open. Screen 3x 15min NDX RUT NYA;
The bears have some credibility issues here and I think we’re going to need to see a break below 2100 here to take the retracement setup that seriously. This is a very nice setup though and may well deliver. The first trading day of any month tends bullish, but the first week of March less so, with Dow down 3 out of the last 5. We’ll see if the bears can overcome their performance issues today.
