The above 2-pack reflects that the NYSE Composite and Wilshire 5000 index COULD BE forming one of the largest “Bearish Head & Shoulders” patterns in the past 100 years.

 The above chart was created for PremiumSector/Commodity Sentiment and Global Dashboard members a few weeks ago.

I am a believer in the following….”Its NOT THE ODDS of something happening that is key, its the IMPACT IF IT DOES!  Odds are low that I am correct on this pattern read and that it will take place! 

Analysis Video

Click here for Massive Head and Shoulders Analysis youtube video

Pattern analysis is a an art, not a science! If the read would happen to be correct, the impact would be large.  Why could these patterns be important?  Because Head & Shoulders topping patterns usually trade at least back down to their necklines and the necklines are more than 40% below current prices! 

A little reminder….I am NOT a Bull nor a Bear. I don’t create these patterns (Billions of people made these patterns over the past 20 years, not me!). I just share what the patterns could be reflecting/suggesting.

I will be very happy to be wrong on this read and to have a pile of eggs on my face.If I end up giving you a good laugh…. we are ALL WINNERS, because that means the market didn’t have a large decline. Many investors are rather bearish at this time already (which could be bullish) as outflows from stock funds has been almost $400 Billion over the past 4 years (See outflows here)  Maybe those out flows and me bringing up this pattern will keep the H&S from taking place!  Hope so.


I detailed this H&S pattern and other similar patterns in a hour and half workshop a couple of months ago. If you would like to view the full workshop CLICK HERE. 

If you would like to see a FREE CONDENSED VERSION of this summer’s hour and a half workshop CLICK HERE. 



Respect that the Dow is at the top of this 70-year channel and is attempting to break support of a rising wedge?  The above chart is a “Monthly Closes,” which means we won’t know if the Dow really broke support until the end of the month!


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