Here is the XME head-and-shoulders pattern that I posted back here (click to enlarge).
Here is what it looks like now:
Notice that the XME came within an eyelash of hitting my target at the blue line.
So, I would say that the XME has discharged the energy in its H&S pattern and is now free to move on to better things.
…but there is just one more thing…
What if the XME is constructing an even larger H&S? Suppose that Point “A” on the second chart is the left shoulder, and the old right shoulder has expanded in size at Point “B”, and my blue target line is now the neckline? That would look something like this:
This pattern suggests a test of the March low.
Both the VIX and SPX were down today.
When this happened in the past, the SPX
was up the next trading day 80% of the
time.
Matt, you are getting way too negative. US economy is recovering quickly. Can’t you see all these green shoots? Here is another one →
dblwyo,
Hey, I like that slowed down stochastic. I will try various values and see if anything shows up. It may be a good way to catch major trend changes on any time frame. Good idea.
Tks
Paula
You have been quite lately. Have you been shopping for a house in Paris too? When is the other Coors Light twin coming back. You said she could run me through one of those 3 bar trades.
String
String.
We exchange services with an accountant. I’ve
been busy setting up her trading account.
Julia is still traveling the world….hope to
see her home in another month.
Hope all is well with you.
Paula
Interesting