Head And Shoulders: Can They Save It From Triggering
The U.S. markets are trading flat on the day after an ugly overnight session in the S&P futures. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $136.91, -0.05 (-0.04%) after the S&P futures were down as much as 20 points overnight. This surge back was helped by the weakening Dollar and the strengthening Euro off their overnight highs and lows.
Yesterday, the people France and Greece sent a clear message to their leaders. The austerity measures being implemented are not favored and those who pushed them through were voted out of office. This brings more uncertainty into the European picture in relation to the EU.
The rebound in stocks were headed by the banks like JPMorgan Chase & Co. (NYSE:JPM) and Goldman Sachs Group, Inc. (NYSE:GS). In addition, there are key technical patterns on the charts that are showing a break down is extremely near but has not triggered. Note the head and shoulder pattern on the chart below. It has not triggered yet but may, depending on where the market closes today.