It might be a “Stretch” to think this way…yet the pattern below remains very possible.


On a short-term basis, several short-term support lines have come into place for the 500 index and on a much longer time frame, the Mid-Cap index finds support is at hand at (3).

A potential “Head & Shoulders” pattern could be forming in the 500 index, with the Right shoulder yet to be completed

Yes it could be a “Stretch to think this way, yet the patterns do suggest a short-term rally is due and aggressive investors will want to be open to taking inverse positions where resistance comes into play at (2).

Mid-Cap 400 index, which has been an upside out performer (see post here) remains above key support. 

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past