Head and Shoulders (23 April, 2009)

A head and shoulders price pattern is now visible on the charts. Frankly, I have never trusted any price pattern...but the point I am trying to illustrate here is the potential levels for SPY in the event of a descend.

There are several outstanding events on the calendar such as the Uptick Rule and Stress Test Results. So I am expecting some potential sideways action.

My advice to you is to follow the flow of the market and not place yourself in any disadvantage by getting overly bearish or bullish. Technically the market has not broken any key support levels...so I am still Neutral on the market despite some heavy selling volume today.

As for any upside targets in the event of a big gap higher...you can refer to my previous posts.



Key earnings I am watching for tomorrow are : AMZN, AXP, BNI, COP, NUE, NFLX, RTN, UPS, UNP