Thursday, 15 August 2013

S&P 500 breaking lower from Head and Shoulders top?

4 hour chart shows the S&P breaking down from a Head and Shoulders top in European trade. However keep an eye on trend channel support and watch for a false break.

Zooming out to the daily chart shows that moves below the 40 day moving average have not been a good time to get short. Often they have been a trigger to look for a new rally to begin. Will this time be different?