The Street Is Buzzing About This Pattern
Everyone on Wall Street is now buzzing about the 'inverse head and shoulders' pattern that the S&P 500 Index has now carved out on the daily charts. This is a bullish pattern that often predicts the price target once the stock breaks out above the neckline or sideways trend line. In this particular case the pattern has a target of $125.00 on the SPDR S&P 500 ETF(NYSE:SPY) should the pattern trigger. Usually, these patterns will have a tendency to play out once they trigger, however, sometimes they will fail. Since the March 2009 low most of the 'inverse head and shoulders'(bullish) patterns have played out to the upside while the 'head and shoulder' top patterns which is bearish have failed. You can check the failed head and shoulder top patterns that failed by looking at any chart in July 2009 and July 2010. We shall see very soon if this pattern triggers and if it reaches it's upside potential target.
Chief Market Strategist