Imagining a bull pattern on the S&P 500
[edit] I neglected to mention another factor in support of the imaginary bull pattern below. That would be the divergent RSI (and MACD) higher lows at the recent market price lower low. Okay bears, hang onto that ball now… bulls are ready to take your ball and then chase you around the playground giving wedgies (no pattern based puns intended).
Men who stare at charts like to stare at patterns, especially patterns that don’t even exist yet.
But this is entertaining to men who stare at charts and besides, it also begs an open mind. Bearing in mind that chart pattern recognition (ha ha ha) is 50% hocus pocus, staring at the weekly chart of the S&P 500 this morning I see a potential Inverted H&S pattern (with an imagined right side shoulder, that has not activated). If it does activate by bottoming (first things first) and taking out 4100 the measurement is ‘only’ to 4800 because of the severe down slope of the (red) neckline.
If this were to play out bullish it would measure out a test of the highs at 4800. Can you imagine that? How would that be for a seasonal (Q4-Q1) suck-in? One dovish peep out of the Fed could ignite this thing. Or maybe just animal spirits released from a year that really dope hammered conventional investors.
Even if the above were to play out against draining money supply (i.e. draining the thing that printed the bull from 2020 to begin with), an easing economy and disinflation in the air, can you imagine the FOMO ‘happy days are here again!’ suck-in a test of the all-time highs would instigate? My larger view for 2023 is bearish, but until this seasonal rally and the imaginary right side shoulder fail…
Man… eyeballs… chart… chart pattern = post to disturb the completely in control bears this morning. Don’t fumble, boyz ‘n girlz.
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