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