Head And Shoulders Top – I Think Not

A lot of people and bloggers are talking about a possible head and shoulders top for the SPX. I have a different opinion.

Mainly not because I don’t think it could happen – as it’s very possible. However, everyone is expecting and waiting for it. We all know that the markets aren’t just going to give us what we want on a silver platter. My guess is that we form a huge and powerful broadening wedge pattern that looks something like this. Besides a break of this pattern lower would be more powerful than a head and shoulders top.

Of course this is a pretty crude drawing but I’m sure you get the picture. Who knows what news could send us back above the highs but if we get there everyone will THINK things are better and then come the BIG fall.