Monday, July 18, 2011
S&P (ES) Breaks 1 support, 1 to go 7/18
I posted a couple weeks ago that I thought a nice head and shoulder formation on the weekly chart was in progress and have been short since then. So far so good, but it will be important to see how the S&P reacts to breaking this support and see if it can hold when it gets retested from below. We can also see we held the deep retracement at 1291 shown in red, and will need to eventually break this last retracement and previous high peak in order for this to continue to our eventual neckline around 1255-1260.