Anyone think this weekly chart might be a head and shoulders pattern in the making? It looks to me like a possibility.
Maybe double top, triple top, quad top.. or NO top.. who knows.. Shoulders should be lower than heads..
I know 2100 is major overhead resistance, but I'm thinking that after a pullback, there could possibly be a rally back to 2110--and maybe ATH's. Everyone is bearish now with all of the earnings that came out today, but the Fed meeting next week might be enough to run things up. I just keep thinking that the top *might* end up being more than most expect.
Personally I LOVE taking the other side of head-andshoulders set ups. I usually place stop order to get LONG and create a new position in these situations. I know most people use stop order to close out a position that is losing, but I do the opposite. Once the index has breached a point where it should not go (the right hand shoulder) I have a stop order to get long there. Everyone is expecting the market to decline, so going through that number creates a massive short squeeze to the upside that is like a crash in reverse.
You are talking about a fake H&S. As every fake pattern, it is usually a continuation pattern if pattern was a reversal and a reversal if pattern was a continuation one. So yes, it is a good tactic to take the opposite side. CM