Sunday, June 27, 2010

The head & shoulders everyone is talking about

Here's the 9 month daily S&P 500 chart:

The head and shoulders pattern that seems to be forming here has a neckline at 1040 which is 180 points below the top of the head at 1220. Using a simple measure rule (1040-180) I get a target of 840 upon a close below the neckline. Currently I don't have a position in the S&P directly but I do have a few IWM puts.


chintan shah said...

do you think that GDP will decline significantly in next yrs?

pythagoruz said...

I am no economist so I can't really make any estimates on the GDP.

However, based on the chart patterns I am seeing I do think the stock market will decline significantly in the next few years.

chintan shah said...

I expect strong dollar,massive decline in stocks & significant contraction in GDP.

lets see,how future unfolds