I remember a month ago I was waiting for the Nasdaq to complete a head and shoulder pattern that never materialized. Tonight as I was going through a few charts this reverse head and shoulder bullish pattern stood out in the most obvious way. For the simple fact that everyone else is looking at the same pattern, it’s highly unlikely that this is not going to play itself out.
However, the market could easily humble the shorts out there and actually follow through on this pattern. For that reason it’s prudent to be flat here, long above the neck line, and short below today’s close. It’s sure not as much fun as crayons..
