Springheel Jack, of SharePlanner.com, takes a technical look at the 15min, daily, and weekly charts for the S&P 500, outlines the head and shoulders pattern that broke down last Friday, and highlights the clear support cluster that strengthens the already high probability pattern target.
The H&S on SPX broke down on Friday and that has a target in the 2054/5 area.
SPX 15min chart:
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That target is backed up on the daily chart by the daily lower band being in the 2053.6 area.
SPX daily chart:
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That target is also backed up on the weekly chart by the weekly middle band being in the 2057 area.
SPX weekly chart:
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There is a very clear support cluster in the H&S target area and that strengthens the already high probability pattern target at 2054/5. I think that target will be made, possibly Monday, and that we should see at least a decent bounce at that support. We may, of course, see a bounce on the way as well, but that should just be a rally to sell.
By Springheel Jack, Contributor, SharePlanner.com
