Bottom line, I believe the bulls need to defend 1360 or a very large head and shoulders pattern may play out with a target of approximately 1290.
Should the bulls defend 1360, there are still several bearish options (green and pink) that allow for a move to 1400. However, the bulls may make a drive for 1418 as well (blue option).
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| SPX 15 Min |
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| Head and Shoulders |
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| Bull Option |
Just a reminder of a longer term view. Note that I'm trying to figure out what minute [b] of Minor 4 is trying to do.
It can easily turn into a flat, which would require minute [b] to retrace [a] by 90%. Or a triangle could be in the works.
One other thing to keep in mind is that the most recent pull back may have just completed minute [4] of Minor 3.
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| Bear Option |
But until the bulls reclaim 1422 and up, this count must be respected, especially with the weekly MACD hooking down.
