Could this become the greatest Head & Shoulders in history?
A very simple analysis of an outlying possibility... a potential neckline could be forming...
A bit of an extreme neckline, I know - but given the direction it would lean if such a neckline developed, that might make it even all the more precipitous a fall if the second shoulder were to complete...
It's almost like its been fashioned as a huge warning sign! In any event, may not be best to speed ahead!
A bit of an extreme neckline, I know - but given the direction it would lean if such a neckline developed, that might make it even all the more precipitous a fall if the second shoulder were to complete...
It's almost like its been fashioned as a huge warning sign! In any event, may not be best to speed ahead!
Note
Test of this extreme possibility starts today.... Shoulder highs are close enough now to be convincing... but second shoulder must complete and that's a LOOOOONNNNG way down, just to complete the shoulder....Before the REAL fall.
Scary technicals if they come into fruition.
In the meantime taking a triple long position in Gold and triple short in Crude Oil on the side as an experiment! Not big amounts, just enough to make the experiment fun!
Trade closed: target reached
Today the perfect potential head and shoulders formed. on BOTH the S&P AND the DOW (the DOW for the first time. I suspected that the S&P might try get closer to the first shoulder of 2871 than it did when I first posted this idea. That has happened today and if it rises any higher this theory becomes less likely. However, only today did the possibility of a second shoulder being completed arise on the DOW. Do the same analysis as I did above with the DOW chart today. Look up "Head and Shoulders" Technical explanation on this site. The closer the shoulders are to each other the more accurate the analysis is. As previously described, the slant of the neckline in both cases is frightening if we now have the highs of the two shoulders reached.
If the market falls from tomorrow (or around the next day or two from these levels and not much higher, ie without getting up to the all time highs of last September) then everyone should think about running for cover and taking defensive positions very quickly until the market stops falling....
Note
SEE CHART PUBLISHED ON DOW ANALYSIS OF EXACTLY THE SAME ANALYSIS ABOVE RE S&P - (link at related ideas below).Note
Today Crude Oil failed to lift the market substantially - the. first time in months there has been a disconnection.Somebody has changed the algos, or found a way to overcome them.
This changes everything. Without Crude Oil making the market and pushing it higher despite fundamentals, the technicals I've pointed out above become more plausible.
Note
Boy, the Plunge Protection Team do like to tease... its getting painful to watch their desperation in pushing the market over the edge... likely to make the end result all the more dramatic.All that's floating this market are artificially high crude oil prices (most likely the Saudi's buying their own crude futures from themselves and linking through algo trading and hedge funds to the S&P as a warning to the market and to Trump not to mess with OPEC, else the market will also plunge...) and the Treasury playing the markets daily through sales and purchases of US Treasuries and Gold. Not much volume and not much big money going into the ballooning asset prices...
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.