Professor’s Comments May 9, 2016
Posted by OMS at May 9th, 2016
Before the Jobs Report was released last week, I talked about a possible Head & Shoulders sub-pattern that was forming as part of the larger Rounding Top Pattern. And after looking at Friday’s action on the charts, I’m starting to lean in that direction.
If this pattern forms, the Dow should rally back to the 17,900 level during the next few days, with the SPX approaching 2065-2070.
If this happens, it will complete the right shoulder of the pattern and set-up the next down leg once 17,500 is broken. This leg down will likely drop the Dow to the 17,000 level and move the SPX below 2000.
I’m positing these rally targets today because I will start looking to establish a few ‘trial’ positions in inverse index ETFs from these higher levels.
That’s what I’m doing,
h
Not sure of the terminology we use? Check out these articles
The Hockey Stick Pattern
The Creation of Waves and Trends
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Category: Professor's Comments