Is the “Largest Bearish Head & Shoulders” pattern in 100 years in place?

CLICK ON CHART TO ENLARGE

The above 2-pack reflects that the NYSE Composite and Wilshire 5000 index COULD BE forming one of the largest "Bearish Head & Shoulders" patterns in the past 100 years.

 The above chart was created for PremiumSector/Commodity Sentiment and Global Dashboard members a few weeks ago.

I am a believer in the following...."Its NOT THE ODDS of something happening that is key, its the IMPACT IF IT DOES!"  Odds are low that I am correct on this pattern read and that it will take place! 

Analysis Video

Click here for Massive Head and Shoulders Analysis youtube video

Pattern analysis is a an art, not a science! If the read would happen to be correct, the impact would be large.  Why could these patterns be important?  Because Head & Shoulders topping patterns usually trade at least back down to their necklines and the necklines are more than 40% below current prices! 

A little reminder....I am NOT a Bull nor a Bear. I don't create these patterns (Billions of people made these patterns over the past 20 years, not me!). I just share what the patterns could be reflecting/suggesting.

I will be very happy to be wrong on this read and to have a pile of eggs on my face.If I end up giving you a good laugh.... we are ALL WINNERS, because that means the market didn't have a large decline. Many investors are rather bearish at this time already (which could be bullish) as outflows from stock funds has been almost $400 Billion over the past 4 years (See outflows here)  Maybe those out flows and me bringing up this pattern will keep the H&S from taking place!  Hope so.

THIS IS MY OBSERVATION OF A PATTERN.... NOT A PREDICTION!

I detailed this H&S pattern and other similar patterns in a hour and half workshop a couple of months ago. If you would like to view the full workshop CLICK HERE. 

If you would like to see a FREE CONDENSED VERSION of this summer's hour and a half workshop CLICK HERE. 

 

CLICK ON CHART TO ENLARGE

Respect that the Dow is at the top of this 70-year channel and is attempting to break support of a rising wedge?  The above chart is a "Monthly Closes," which means we won't know if the Dow really broke support until the end of the month!

 

-

Be Sociable, Share!

One Comments

  1. [...] Kimble Charting Solutions [...]