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A long-term support/resistance line looks to have impacted the S&P 500 a year ago at (1) in the chart above. This line didn’t cause the 500 index to fall a ton last year (only 16% in a few weeks during the fall of 2001), yet it did slow down a very sharp rally.
Is this line doing the same thing again at (2)?
Investor X brings up a good point about the head and shoulders pattern. But is it even possible to have a true H&S on over such a long period of time? I’ve heard some folks say it’s not possible. Your take?
Sure looks like a Head & Shoulders formation, also a Double Top formation, at the break down through the support at ~1369 medium term at(2)…take your pick