Is this 4-hour chart of the U.S. stock index showing a shaky head and shoulders pattern?
How much lower can the price go from here if it is already breaching the reversal formation's neckline?
A counteroffensive might occur at any time, unsettling investors throughout the world. The S&P 500 index is currently challenging the neckline of its head and shoulders pattern after breaking through its rising trend line, indicating that a reversal is imminent.
Should there be another breakdown, it would trigger a decline to the same height as the formation, which might propel the equities index towards S2 ($5,026.40) and eventually S3 ($4,944.85).
Although there is still positive momentum because the 100 SMA is above the 200 SMA, the index has dropped below both moving averages, which is a warning sign that the trend is about to change.
In any event, remember to stay updated on geopolitical developments and U.S. earnings reports, since these may still have an effect on stock market fluctuations. Remember to have a look at this week's collection of excellent economic triggers as well!
