Head and Shoulders holds in S&P

The head and shoulders pattern in the main market index for the US stock market…The S&P 500. (ETF Proxy – AMEX:SPY) continues to unfold.

 

 

 

Price is just hacking and gasping sideways, and my opinion from last week remains unchanged.  I am still expecting to see this pattern turn the markets lower to test the $180 per share zone…

 

 

 

Even though I am bearish overall on the broad markets,  last week’s quick “flip” in United Health Group (NYSE:UNH) proves that no matter the market bias, there is ALWAYS opportunity out there for those willing to dig for treasure. The weekly power to the upside was more than enough to drive this trade to a modest gain in spite of the choppy indexes.

 

We all love the big winners from time to time, but it is small, reliable, repeatable gains such as this that are the backbone of any professional trader’s P&L.

 

 

 

Facebook (NASDAQ:FB) has been building a descending triangle over the past few weeks, and I believe it is close to a setup.  If the head and shoulders in the S&P 500 triggers, that bearish wave of momentum should drive FB down into its trigger zone (Below the lower trend line.) $50 per share would be the logical first step for any selling, than I would expect to see the lows near $45 per share challenged.

Bo Yoder

3d Apex Trading

Learn more about Bo´s trading strategies – click here.