Potential 15% Correction within Days for the S&P

FX:SPX500   S&P 500 index of US listed shares
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One of my favorite parts of analyzing and trading stocks is sleuthing through charts to find hidden and not so obvious candlestick patterns, and I believe that I may have found a massive one on the S&P             . There is the potential for an Inverted Head & Shoulders Continuation Pattern that stretches back to 2000. When using the lower line of the uptrend channel from 2009, the left shoulder lines up lines up perfectly to form a Bull Flag as shown (Week of June 13th 2016)

These patterns mesh well with my WaveTrend analysis. There is a strong bearish divergence on the Daily Wave which needs correction, but the Weekly Wave has gotten very strong and will only allow a minor (15%) pullback, there won't be a crash (that comes later). There is bearish divergence on the Monthly Wave, but that won't come into play until all of the extra power in the Weekly Wave gets used up.

With all of that said, the S&P             doesn't look like a chart that is about to crash. The Day/Week/Monthly Waves are all positive and above zero... but I can see how it can get ugly quickly. A break of the uptrend line from Feb 8th could make things fall quickly. A potential catalyst for this break is the impending decline in oil             and commodities . I am projecting that the dollar is going up to $98 in the next week and oil             is pulling back 25% to $37 (the last two large corrections since August have coincided with declines in Oil             ). Couple this with some BREXIT fears and/or some China drama and we have formula for a swift and unexpected correction... which will be saved when the Fed swoops in at their June 14th meeting to lower interest rates, sending stocks back up and crushing the dollar.

Odds are that this won't happen, but the potential is there and I will be in position... and while it would be nice to profit from this move, I'm mainly excited for the possibility that this massive pattern may actually come to fruition.

Agreed that there will be a likely correction. It is at the top of a two year range. But that is not a H&S pattern. Right shoulder would never be there. Simply the top of the range and topping pattern has yet to unfold.
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