- After today's drop to the neckline, a Head and Shoulder formation had formed. - Short term trend is reversed as the index is unable to achieve a Higher High and broke down below the uptrend. - If the index break down below the neckline, we should see the index heading towards 2900 (measurement based on the H's height) - Be prepared to short it but wait for confirmation before entering a short position.
Trade active
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Index did not close below the neckline (2960.8) while we see some strength back on S&P, strength confirmation is when it manage to break and stay above 2985
Have some patience, trading opportunity will eventually come.
Trade closed: target reached
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On 1st Oct where SP index had broke the neckline and confirm the H&S pattern, short entry at 2941 and close at 2880, excedeed both our Target price