How to identify a head and shoulders pattern failure

The larger move we started discussing last week is now here and it was and remains down. Most traders and investors now would like to know how long it will last and how far it will go.

These are legitimate questions and deserve answers. The best venue is to discuss in detail during tonight’s market analysis video.

Remember, a good portion of May will be filled with volatility and markets that will head to extremes in both directions.

Keep all price levels on both the ES and SPY charts in mind, as they have been and should continue to work for both support and resistance points.

Crude oil spiked up as high as $62.58 today before reversing downward. I began to receive several email messages asking if the reversal was a topping tail that would produce a lot of downward price movement. This warrants discussion in tonight’s analysis.

Gold spent the day churning close to the flat line. As long as we don’t trade below a certain number, then we are scheduled for higher prices later this week or next. I’ll be happy to provide the line in the sand support level if you tune in tonight.

Bonds continued their sell, which is the exact reason I moved out of the trade and explained the philosophy in last nights video. This is a great lesson in reading charts!!!

The dollar is also struggling and may have further to fall, even against all odds. That’s the way the market works, it’s designed to make you wrong long before you’re right.

About the Author

Trading and investing in markets is second nature to some, but a mystery to others. The goal is to provide a forum where everyday people aspiring to be part time or full time traders will learn how view markets differently and profit beyond their wildest dreams.

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