Posts Tagged ‘Head and Shoulders Pattern’
The S and P 500 Showing a Major Topping Pattern
If you look to the Chart below you will see most evidently the major top I speak of. It is a Head and Shoulders top like the one in my US Dollar Index article’s Daily Chart. But this is on the Weekly Chart and therefore shows longer term patterns. This top is considered a long term major top and may play this role for some months to come. The target to fulfill the pattern may be below 950 point for the S and P 500 Index and may well spell the beginning of a long term downwards cycle for the world’s financial markets.
This is the way the Chart looks:
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US Dollar–Head And Shoulders Above the Crowd
The US Dollar Index Futures, a major tool used to estimate the US Dollar’s true worldwide value as it trades against the major currencies of the world, has been quietly making a technical pattern called a “head and shoulders” . If you look at it carefully you will see an image, more or less of a man’s head and shoulders, with the shoulders peaking slightly at their end. This is the classical look of the pattern. Once more, the Index has already broken out from the pattern, i.e. passed the neckline, and is on the way to fulfill its destiny and head to the target I listed on the Chart below, that is, 82.00 points.
Since this pattern is usually associated with major tops and we have no reason to believe that such is not the case here, I do believe we are at the start of a major downwards trend that could last a few months to a year and drag the Dollar down to places it has not seen in a long time. More than 10 years of US Government spending on wars and bailing out financial criminals have flooded the world with its own currency of reference. Now it is time for the Dollar to pay back for the devastation it has wreaked on many innocent people. It will be only a symbolic gesture, and we may well forget it this time next year. Because, you know, this is a world where lies thrive and the Mighty Dollar rules!
This is the way the Chart looks:
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Picture This!
Below is a chart, or Candlestick Chart if you’d like to call it. Parts of it are much discussed elsewhere in this site, but mostly not. I think it is self explanatory and being that it is complicated and hard to understand, it has the honor of being the 1st in the advanced tutorials. Don’t worry, I’m working on a HEAVY project that would put hairs on the most experienced CMT’s chest–supposing he wants them there.
Here is the way the Chart looks:
PLEASE CLICK ON THE PICTURE TO GET A COMPLETE, LARGE VIEW
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