On 6/5 the Power of the Pattern reflected in the chart below that two important broad market index’s were on support and until broken, these are great places to go long with stops just below support. (see 6/5 Buy on support post)
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At the same time these support lines were being hit, I shared the chart below with Premium Members 10 days ago, reflecting that investors had become rather bearish of late, while support was coming into play.
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When key support lines come into play and sentiment turns rather bearish, it shouldn’t be a suprise to see a rally take place, despite global news that some view as concerning!
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A rally over the near future could well set up a big move going into the fall months. I will discuss next week in the webinar, why the set up/biggest trading opportunity for the whole year looks to be just a few weeks away!
Could by any means the 2010-2012 pattern on the SP500 be considered a (very tilted) Head&Shoulders pattern, even though the right shoulder is actually higher than the head? Definitively looks as a H&S on the NYSE Composite to me….