Posted on June 24, 2010 - by Drizzt

Trend Watch:STI looks very topish with a head and shoulders pattern

Photo by Gabriel M.

Alot of sites are pointing that head and shoulders pattern, which is a bearish pattern, is observed on numerous indices.

I think lets trade with skepticism in mind, plan when it comes to fruitation and plan when it does not. This pattern have not been confirmed yet so until we see confirmation this is very likely still very bullish.

Here is a chart from Wealth Buch. What i observe is that the potential left shoulder volume seems to be equal to the current volume. Although probably due to world cup the volume on the left should is lesser (though i can’t really tell). Head and shoulders normally have that volume profile: Read more…

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2. Trend Watch:Could this be the consolidation? $SPY $EWS
3. Yield Watch:SPH breaks trend. Opportunity?