I am still open to the possibility of a reverse head and shoulders pattern being created on the S & P 500 index.
Today we declined on big volume from the highs and makes me think my previous article of 'summer doldrums' could be kicking into effect thereby delaying the big upwards breakout in the S & P 500.
The fact is that July and August can be horrible months to trade and a horrible time to get real momentum and adequate volume upwards in the market. Let's face it, a lot of the big money is at the beach and body surfing on cape cod!
So here in this chart I just drew a brief sketch of a different possibility, a reverse head and shoulders pattern that could be in process right now. Further confirmation is needed however and the first sign will be a return to 1170 on the S & P to complete the creation of the right shoulder of this reverse head and shoulders pattern.
I am not saying that this WILL be a reverse head and shoulders pattern. Just open to the possibility of it being one given the probabilities of slow low volume lethargic summer trading...
Time will tell as they say.
I am still viewing this as an overall consolidation before break out to new highs down the road. This is the preferred scenario analysis for now.
Will update if new developments warrant on the S & P 500.