Hey guys See image. I believe one is forming, starting to shape on/about Nov-11. Neckline approx 1770 area. Blue and Red lines are done my me. Anyone care to chime in ? Thank You
The volume's wrong. More likely you're looking at nothing more than a test of the long-term trendline.
Thank you DB. Where should the volume be ? Volume appears to be increasing as right shoulder forms. Left shoulder volume is kinda lethargic, yes. Note that we had Thanksgiving, Christmas, and New Years holidays, all occur since I saw this formation start, and this may affect the "picture perfect" H/S volume. Thanks for your insight
Volume should rise during the first high, rise higher on the higher high, then rise again on the next attempt at a higher high, though not as high as during the second rise and perhaps not even as high as the first rise. Without that, it doesn't mean much. In fact, volume rises when price falls, which is the opposite of what it should be doing. In any case, the statistical significance of this isn't compelling enough to make much of it. As long as price maintains its uptrend, just go with it.
S&P needs to retest its high of 1847 then move down from there for it to be head and shoulders, which it isn't.
What's taking place is great for a swing trader (which I am) who's short index futures. But I'm referring to those guys that are betting on a long-term bear market.