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After this week, the $NDX (neck line near 3414) and QQQ (neckline near 83.20) daily charts are forming an H&S pattern with their 5 year trend highs representing the head within the emerging pattern. Additionally, the divergence of tech (down) from value (finding higher highs) at present is getting rather extreme. Just another technical sign that something may "give" soon.


Market SniperMarket Sniper
Good to see you, cabs! I concur. We have a series of lower highs nearly across the board. Transports normally lead and they look the same. 5/9/14
Here's the problem. Eventually what happens is all failed H&S patterns turn into triangles that usually break out in the direction of the prior trend. The #1 reason why people think H&S patterns don't work is because people confuse them with triangle patterns. If it ends up being a triangle, look out above. 5/9/14