Nick Nasad
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S&P Head and Shoulders Pattern Preceded This Week's Fall

This week's fall in the S&P500 was set up over the past few weeks with a nice technical head-and-shoulders pattern.

Now much to explain, its fairly self-evident though you can have either a horizontal neckline or one that is sloping upward. With a H&S you measure the distance between the high and the neckline and project it downward from the neckline so we can see that the index has gone about 2/3rds of the way to its measured move projection at around 1646.75. That could mean a bit more downside bias from a technical perspective until we reach that level, which does correspond with an old level that acted as resistance for a short time (July 9th/10th). 

- Nick