The Bulls Are Getting Exhausted: 6-6-09 Stock Market Analysis

[ndell7]

Is that a bullish inverse head & shoulders pattern on the SPY chart?

[elwalvador]

No, so far we only have the left shoulder and the head. Once we get our pull back we'll form the right shoulder. Hopefully we will get the H&S instead of another leg down.

[SPYoptionstrader]

I'm assuming you're looking at the daily timeframe.

You have to understand where those chart patterns show up. An inverse head and shoulder means revering a bearish trend to a bullish trend. It is more applicable if you see that pattern in an existing downtrend. Then that would make sense since that pattern indicates a reversal to a bullish uptrend. Seeing these bullish patterns doesn't have much significance if the trend is already bullish. Hope this makes sense.