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There is a Head & Shoulders pattern in the works on S&P 500 emini futures (/ES). Note the three grey ovals representing the left shoulder, head, and right shoulder. The up sloping purple line represents the neckline support of this pattern, which is being tested as we speak. The blue rectangle measures the move from the top of the head to the neckline directly below, then we duplicate that move assuming a neckline break some time this week to show the measured move if this formation comes to fruition. In the end, the green oval indicates a measures move in the 1275-1290 range, which takes it back to previous resistance turned support as well as the 200 day simple moving average support.
Makes a lot of sense, and we intend to position bearish if the neckline support breaks in the coming days.