The previous post on the S&P500 identified an Inverse Head & Shoulders pattern with a target around 1430. Also suggested was the dangerously overbought condition short-term, and the possibility of a back-test. Since then, price has whip-sawed in a corrective downward pattern, and is poised crucially. Here's the updated hourly chart.
As you can see, price has managed to stay mostly above the neckline, and is now poised at the uptrendline connecting the prior lows. The indicators offer no help as to the direction at the moment, but if we are to keep with the trend in place, expect a sharp move up towards 1430, to validate the IHS. Alternatively, a breakdown below the neckline, invalidates the IHS & sets up a bearish picture.
All the best!
As you can see, price has managed to stay mostly above the neckline, and is now poised at the uptrendline connecting the prior lows. The indicators offer no help as to the direction at the moment, but if we are to keep with the trend in place, expect a sharp move up towards 1430, to validate the IHS. Alternatively, a breakdown below the neckline, invalidates the IHS & sets up a bearish picture.
All the best!
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