By: Scott Redler
What would John Hannibal Smith Say? “I love it when a plan comes together”
We are now hovering at the neckline of the head and shoulders pattern we’ve been painting for weeks now. Question is, when will it ignite and how quickly will we fall?
S&P was just at 1131 last Monday, 100 or so handles higher. So it might take a bit of time.
I am Tier one short after being very heavy yesterday. Watch leaders for clues to see if we slice through yesterday’s lows or work off some of the down move.
If we slice through yesterday’s lows I see micro support at 1028 then bigger one at 1019.
If we rally, 1047-1055 is resistance one. I will add a bit more shorts. 1062-1067 will be the area this market can’t get through for this negative pattern to really remain in control. Bottom line is I see us breaking 1000 on the S&P within weeks, but how we get there and how you handle it is up to you.
