SPX 10-Minute Chart Head and Shoulders (H&S) Pattern

The H&S on the 10-minute is an interesting pattern to watch as the day begins. Note how price bounced off the neckline in the final one-half hour of trading yesterday afternoon. So price will tease this neckline this morning and either bounce, or die.  The S&P futures have been buoyant all morning so at least initially, bounce appears to be the answer. A failure of the 1691-1692 neckline will target the 1683-1685 landing zone and, lo and behold, this lines up with the prior support from Friday morning. The indicators are a mixed bag. The RSI  and money flow never reached oversold territory. Despite the higher futures, the projection is for the neck line to fail and for price to venture towards the mid 1680's. Perhaps another right shoulder will form in the mid 1690's after the bell and maybe the 10 AM pivot on New Home Sales data will create the neck line failure. The bulls remain in control of the markets and are using lower volatility and higher copper as the two main fuel sources the last few days. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

Note Added 4:01 PM:  The H&S plays out in textbook fashion today. Price fails the neckline at 1690-1691 and dropped to 1688 after the opening bell. A bounce occurs ffrom 1688 back up for a back kiss of the neckline, which was successful, resulting in collapse. Price fell to a LOD at 1682.57 satisfying the H&S target to complete the pattern.

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