An update to my previous post. Possible H&S formation on S&P 500 Monthly Chart. My observations why this could be an H&S Formation
Left Shoulder: Upward move to the upside on lower volume. Reaching the peak and breaking down on high volume, stopping at the upward trend line (in this case 10 EMA)
Head: From the low point of the left shoulder it can be observed that we had another rally (on lower volume), but failed at the high this time breaking the S&P 500 uptend.
Right Shoulder: Since December 24 low SPY began to form a very rapid uptrend from the (now the neckline ~$248). If this is indeed an H&S formation we can expect that the rally will come to halt at around 269-270 level which will also happen to be 10 EMA which SPY broke last year.
Neckline is ~ 248. Expected move if neck is broken (as measured from head to neckline ) is ~14% from 248 somewhere near 50 EMA of ~237