So the head and shoulder neckline break, all in shorts right? Wrong. Note the orderly action, respecting fibs very tightly on the way down. Also note the formation of a in the process of forming the head and right shoulder. Also note that next week is options expiry (Opex) on Friday 20th May. This chart tells you all you need to know about what usually happens in these weeks https://northmantrader.files.wordpress.com/2016/05/opex1.png.
So my plan for next week is perhaps initially scalp short, and look for a reversal around the bottom purple channel line. If this plays out well and we see reversal there, you can get long and hold it, perhaps even past opex into week commencing 23rd May. Just keep bringing up your stops to lock in profit, or ride the trend (buy dips) intraday if you prefer.
If all goes according to plan (warning - it usually doesn't :D), we'll hit the upper , and this will coincide with a 61.8 retracement and also a proper retest of the neckline as resistance. If the plan is still in tact at this stage, that could be an excellent place to look for shorts, aiming for the technical target of the , all the way down at 17k on the dow (which also coincides with the big 2000 level on S&P 500 )
The picture is a bit unclear, because you could also draw the H&S neckline in several ways, or argue there are several different patterns in play here. once argument is we just rejected from the neckline in the closing hours of Friday. I think patience is required to get the right entry at the moment.
Or, we look for solid rejection , ideally with volume, closed candles. Again don't chase rapid moves, let them come back,