Mar de Leva (swell waves) en Cartagena de Indias - Colombia

Tuesday, August 3, 2010

I insist… S&P Bearish Head and Shoulders in the making

After the clearly defined 5 waves bullish move, price is unfolding an ABC correction pattern, now at possible wave B completion as seen in Chart 2.

Is important to note, as seen in Chart 1,  that even though price rejected from 38.2 Fib Retracement level, it entered and broke 38.2 Fib Fan Channel, giving high possibilities of reaching 61.8 level.

Finally, but not less important, is the possible Head and Shoulders pattern seen in Chart 3.

Note the symmetry shown between the time spent by price to go from Left Shoulder date to Head and from Head to the possible Right Shoulder (71 days).

S&P_EW_2010-08-03_1212

Chart 1. Elliott Wave counting.
S&P_ABC_Correction_2010-08-03_1207
Chart 2. Wave B of possible ABC correction.
S&P_H&S_2010-08-03_1154
Chart 3. Possible daily Bearish Head and Shoulders in the making.

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