Thursday, 4 June 2015

S&P 500 testing key trend line support in early European trade

Hang Seng tests Head & Shoulders neckline then rallies. False break lower? Maybe not.

Daily chart shows the Hang Seng today tested support at the neckline of the illustrated Head and Shoulders top, then rallied. A bullish false break lower? Maybe, but drilling down shows that the bullish case is anything but certain.

4 hour chart zooms in.

1 hour chart shows that the post-lunch rally carried to parallel trend line resistance, and may have peaked, clearing the way for the market to continue lower. We'll find out in coming sessions.