Stock Market New Head & Shoulders Formation
Stock-Markets / Stock Markets 2015 Mar 27, 2015 - 11:39 AM GMTGood Morning!
As I observed yesterday’s action, it appears that the right shoulder of a Head & Shoulders formation has been formed. The minimum Target is 1976.14, which triggers yet another Broadening Wedge, or at least a support level at 1990.00.
What is more important for a crash scenario in April is the long-term uptrend line at 1960.00. That trendline originates at 1266.74, which agrees with the Cup with Handle formation target, since breaking the trendline portends a complete retracement. I suspect that we may need to break that trendline by month end (three days left!) to get the selling to accelerate in April.
TNX has complete Wave I of (c). There may be a pullback to 19.60 or slightly lower before Wave iii ensues. A normal range for Wave iii may be as high as 22.00. This may also cause panic selling in SPX.
Regards,
Tony
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