Wednesday, November 4, 2015

Head-and-Shoulders Formation In The S&P 500...........

Head-and-Shoulders Formation In The S&P 500

Head-and-shoulders formation in the S&P 500 that could bode ill for the broad stock-market benchmark.

A head-and-shoulders pattern describes three successive peaks. Those peaks are described as the left shoulder and right shoulder, the head representing the highest peak in the middle, and a neckline linking two low points. The pattern is a signal that an asset may be setting up for a significant slide lower.

In the following chart, the head is around 2,134, with the left and right shoulders at around 2,093 and the so-called neckline, or low points, at about 2,020.

The potential for a giant heads and shoulders pattern remains fully in play. The S&P 500 could see "a very steep correction into 2016.

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