Friday was a test of the neckline, on the infamous S&P head and shoulders. The neckline slants up. I love this chart. I actually went long at 893, but any drop below that purple channel line (which is also the neckline), will cause that long to be quickly sold off. TOS now has a feature to reverse the trade....awesome feature and awesome concept....if you were wrong, do more than admit you were wrong.....cover your bad bet and place a bet the other direction.
Target is in the 800 range if the neckline is broken, however, keep an eye out for a retrace back up to the neckline....that is when agressive traders would go-all in.
I added an $SPX chart per comment from a fellow BLOGGER (is that like a bloke), in which neckline was not tested.
Roger that. But sometimes (often) ES doesn't do the obvious.
ReplyDeleteAgreed, and I have noticed an increasing percentage of fake breaks.
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