Home > Short-Term Trader > Chart Of The S&P 500 Points To A Few Possible Outcomes Heading Into Fall

Chart Of The S&P 500 Points To A Few Possible Outcomes Heading Into Fall

September 7, 2010 Leave a comment Go to comments

The Charts are beginning to shape up a bit more clearly as we head into the all important fall trading period. The past three months have been range-bound creating plenty of confusion amongst the bulls and bears. Soon, one side should be vindicated even if for only a short period of time. Upon examining the S&P 500 I see three possibilities for how the next 2-3 months could unfold.

1. The Inverse H&S pattern highlighted last week will further develop and the market will make a strong push to or even past the old highs set back in April.

2. The market will continue its back-n-forth range bound ways eventually wedging itself towards the apex of a triangle which will break to the upside.

3. The before mentioned triangle turns into a bearish continuation pattern from the downward thrust in late spring/early summer. This triangle could also be considered the right shoulder of a more grand head-and-shoudlers pattern, which everyone is aware of by now.

Possible paths of least resistance

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Categories: Short-Term Trader
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