Thursday, September 22, 2011

Technical Picture - H&S Breakout

Markets traded lower overnight following a disappointing FOMC statement yesterday. We gapped wide and grinded lower for much of the session. From the daily chart of the SPY above we see that our H&S pattern has finally broken out successfully with volume. We are oversold and I am expecting a dead cat bounce soon.

Big picture, if we fail to hold the 61.8% Fib retracement of the 2010 low to the 2011 breakdown low as depicted on the SPX chart below, a full retracement is likely.


Update on the copper futures chart I posted over the weekend. H&S top within a big double top. The H&S measured move is close to target. Here again, I would expect dead cat bounce soon.

1 comment:

Stan said...

Jamie,

You use stockcharts for your analysis. Check out our new free service, tradingview.com. You can embed live charts into your blog instead of static screenshots, for instance. You may like ours better... cheers.