Thursday, June 24, 2010

Hunchback formation

Well, its really just a head-and-shoulders with a shrunken right hump, er, shoulder. Weak markets cannot form a proper right shoulder.


This daily close only view makes that clearer. Don't forget that this is only a "potential" head-and-shoulders. Only a break below the neckline makes it a real one.

4 comments:

Scott said...

Dear Mr. Kahn,

Although the H&S pattern needs to prove itself, are you concerned the 50-day MA is rolling over so sharply and that it will cross below the 200-day MA soon?

Scott W.

Tryin2Trade said...

Dear Mr. Kahn

With Gold almost making those scary patterns, a rising wedge is evident on the daily chart...and almost a parabolic rise....

Can we assume that Gold will correct a lil giving that lil rally to the S&P....

Regards!

Quick Takes Pro said...

Scott, that is confirmation of the topping process. The more things that are bearish, the better the chances of the market falling.

Quick Takes Pro said...

Tryin,
Does gold wag the stocks market dog? I don't think that is the prevailing relationship today. But there is indeed a rising wedge in play.