SPX re-test of neckline

Discussion in 'Trading' started by iceman1, Jul 29, 2003.

  1. @ approx. 985 of small inverted H & S pattern on closing line chart

    Still in a triangular pattern... but now we have a series of lower closing highs with a 4-point upper TL.

    How many say we (still) breakout of said potential continuation pattern... to 1025-50 first?

    How many say 1000 +/- 1% (i.e. recent closing highs) will be a NT "top"?

    How many say we re-test 200 day EMA... during month of August?

    How many say market breaks below 200 day in August/September period?

    I am in camp looking for a very decent shorting opp. coming in August on SPX with ITM puts but think 200 day will hold with maybe a thrust below same... maybe a 900-910 downside.


  2. ?
  3. FinStat


    um....yeah.........good luck with that..........
  4. ROFL

    F. P.

  5. I will agree that the 1010-15 level most likely will be seen in August, and the Springtime breakout stalled in July, allowing the rapid 200 Day EMA to ascend just in line enough to be tested in August.

    This is purely technically speaking, a large geopolitical event in the Middle East, for example, could rip the right shoulder out of its socket. The capture of an arch villain (ala Saddam or Osama) could push the market up past its midSummer doldrums.

  6. Yes.

    But I wasn't referring to the major H &S top's neckline... but a recent inverted H &S on a closing chart during the past week wherein 985 was the approximate NL... and like clockwork it re-tested and triggered a rally. Being a smaller pattern I did not think it would provide much more fuel then we got yesterday.