Stocks have maitained the range. Traders were hopeful yesterday as stock futures opened higher, only to sell off back to support later. We have retraced to just above 4068, the neckline of our failed inverse head and shoulders pattern. This should provide strong support and is somehwat of a significant level. If we are able to break through it is a bearish sign. If we are able to break out we must first top 4214, then the next target is 4306.
Head & Shoulders : nice comment. Perhaps more clear : "break through" = "break down", "break out" = "break up"
quantguy
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@Bill_Howell, yeah good point. Sources conflict about what 'break out' actually means. When used in the most general sense, it implies a significant deviation from a particular range, or consolidation in volatility. In other connotations 'break out' implies a bullish rally. However, 'break down' will strictly imply a sharp selloff.