Moving Toward The Neckline

While market participants are waiting for the SP500 to come back down and test the 8/9/11 low of 1101.54, the index is making a turn toward the H&S neckline it has broken near the 1260 level.

Here are the updated price charts for the SP500 and its ETF, SPY.

SP500:



SP500 (30 minutes):



SPY:



SPY (30 minutes):




The 30 minutes intraday charts show there is a double bottom price pattern formed from recent price actions, and the measure move could push the SP500 and the SPY above the H&S neckline. If that happen, it is another reminder from the market to remind us don’t expect the expected (right now, lot of talking heads are staring at the 1260 level as the next possible resistance level.)