Thursday, July 2, 2009
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This is something I've been wondering/observing about for the last few weeks. Is the market forming a head and shoulders top? As the chart shows, there's a pretty clear left shoulder and head on the chart now. All we need is the right side.
If you think about it, this patter would make a bit of sense right now. We're had a really strong rally and are now topping. However the market is also waiting to see if the forthcoming economic news is strong enough to warrant a further move higher. Hence we get a sideways market which would fit in with the head and shoulders pattern.