Dow Jones, Nasdaq and S&P 500 indices: Perfect Head'n'Shoulders!

Yes, you see head and shoulders patterns from time to time on individual issues but never for the entire market! This is incredible and is a serious signal for more declines to come.

The chart speaks for itself:

dowhsbh2.gif


Also note the "death cross" -- 40 day MA crossing down under the 200 day MA.

A lot of times you'll get a relief rally after the neckline is broken back up to the neckline, to be followed by another decline. We'll see. This is not good, folks.
 
Quote from dandxg:

just curious, how come the 40 DMA and not 50 DMA?

Habit. A lot of people use the 40, a lot use the 50. I don't think it makes much difference. The 40 will cross the 200 a little faster, though.
 
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