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(12/5/15)
Although the S&P 500 may rally back to its previous high
before the year ends the overall price action is cause for concern. If the
S&P 500 does get back to its previous high at 2135 the overall pattern is
indicative of a Butterfly pattern with an example shown below.
The positive move on Friday would be the start of the CD leg
with a target between 2135 and 2150 to complete the pattern. This would
then be followed by a sell off as we move into the early part of 2016.
Meanwhile a look at the Equally Weighted S&P 500 shows
a similar pattern however notice the CD leg wouldn't get back to the previous
high.
Finally the last thing I would like to point out is that the
Equally Weighted S&P 500 appears to be developing a large Head and Shoulders
Top pattern.
Amateur Investors
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