I know we’ve had a bad day on the sharemarket and I’m no doubt doing a bit of data mining as a result. But I’ve noticed a rather nasty sequence of head and shoulders patterns forming on the S&P500.
First, the 1 year chart:
That’s a beauty isn’t it? We reported it last week and so far the break of the neckline has delivered spectacularly.
Next the 5 year:
This one is obviously more a potential H&S formation, but it’s a nice set up nonetheless.
Finally, we come to the horror, the 25 year:
Now that’s enough to make Mr Kurtz roll over in anguish.