S&P Reverses With A Handsome Inverse Head And Shoulders Pattern
2022.05.17 16:08
Tuesday brings us an upswing on stocks, at least during the European session. That should help the US but their decisions should also be affected by the retail sales print that will hit the screens soon. All we can say for now is that we’re anticipating this data to be on the green side of the market.
On S&P 500, it looks really optimistic from the technical side as well. On the chart, we have a very handsome inverse head and shoulders pattern (blue). The surge from today’s European session, allowed the price to break the neckline (blue) of this pattern, which in consequence gives us a mid-term buy signal.
The closest target is currently on the mid-term down trendline (black) and the horizontal resistance on the 4155 (orange). As long as we stay below those two, there is no real long-term buy signal. So far, it’s just a correction. A promising one but still just a correction. The positive sentiment will be cancelled should the price drops below the neckline, but chances for that are now limited.
sp500 h4
