A Breakout Would Be Just the Start
Given that I am the self-appointed queen of head-and-shoulders patterns, it will not surprise you that my inbox was filled this weekend with questions on the potential head-and-shoulders bottom in the S&P 500. Of course, in recent days I have been focusing more on the potential head-and-shoulders top in bond yields via iShares Barclays 20+ Year Treasury Bond Fund (TLT), rather than the bottom in the S&P. As we know, these tend to move in inverse fashion to one another.
First, for those of you who don't see the head-and-shoulders bottom in the S&P, see the chart below, with the annotations in red. I've left in the black line -- the lower line of the November triangle pattern -- so you can see how it has acted as resistance on this recent rally. The line is rising, meaning the resistance level is climbing with time -- and, as you can see, it should continue to act as resistance for at least a bit more time....335 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.