S&P Support Below the H&S Neckline

By | May 19, 2016

The S&P 500 head and shoulders pattern neckline has been broken but only an intraday basis and that is important to remember, because a rally into the close today that creates a hammer candle at this key technical level will completely reverse the appearance and the interpretation of today’s movement in the index.

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That said, the next levels of support are first the 200 day moving average, and below that the 1950 area which was the neckline of the “W” pattern breakout that initiated the rally this year.

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