SPY/S&P500 H&S Forming
Updated
SPY is potentially forming a head-and-shoulders pattern on the daily TF. We spoke about our relief rally targets the other day being the Golden Pocket FIB retracement from the Sept 12th breakdown @ $390, which happens to be right @ the 100EMA resistance level.
If we get the GP retracement, that would give us a perfect right shoulder for the H&S pattern.
The measured move is the top of the head to the neckline, with the breakdown level being the neckline as seen in my chart.
A couple of interesting points of confluence to note:
- the GP FIB is right @ the 100EMA resistance, which is right below the 50 & the bear-flag resistance channel (all should be major resistance points & likely points of bullish failure)
- the H&S measured move target is right @ a major support trendline drawn by taking the Dec 3, Jan 24, Feb 24 & June 17 lows where we saw prices bounce & get significant periods of bullish relief
Hope you guys enjoy the content!
If we get the GP retracement, that would give us a perfect right shoulder for the H&S pattern.
The measured move is the top of the head to the neckline, with the breakdown level being the neckline as seen in my chart.
A couple of interesting points of confluence to note:
- the GP FIB is right @ the 100EMA resistance, which is right below the 50 & the bear-flag resistance channel (all should be major resistance points & likely points of bullish failure)
- the H&S measured move target is right @ a major support trendline drawn by taking the Dec 3, Jan 24, Feb 24 & June 17 lows where we saw prices bounce & get significant periods of bullish relief
Hope you guys enjoy the content!
Note
We got a bullish cross of the 9 above the 21EMA on the 4HR TF. This looks good for bullish continuation & is in line with the GP FIB retracement theory. I will be closing my calls if we reach that level & adding to my puts as we go up.
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