Head and Shoulders forming in Stocks??

21 באפר׳ 2021

Stocks stumbled yesterday, and broke down from our level at 4144. The S&P seems to be forming a new level around 4122, which is providing support at the moment. Observe that we may have a head and shoulders pattern forming, with a right shoulder potentially bounded by 4144, if we can't break through resistance there. If we can, we should be able reach 4188. After such an extended rally stocks were due for a correction and we are likely to at least see a sideways corrective wave before more momentum comes through. Further retracement is also reasonable, especially if our head and shoulders pattern forms. If so, inverse Fibonacci levels anchored about the span of the head shoulders range suggest we could dip to 4081, which is conspicuously close to one of our technical levels at 4073.