Head & Shoulders Pattern.

This was on Trader's Narrative yesterday. I can't post the chart but you can link to it here: http://www.tradersnarrative.com/sp-500-forming-a-head-shoulder-pattern-2244.html.

Here's is a summary of their analysis: "Head and shoulder formations are one of the most fundamental technical patterns. They are arguably one of the easiest to recognize on a chart and are almost always found at turning points in price. Right now we are seeing the S&P 500 Index (SPX) carving out what looks to be the right side of a head and shoulder formation:
The defining element of this patterns is not only the striking silhouette it leaves behind on price charts but also the volume that accompanies it. For down trending reversals, like this one, we want to see heavy volume come in as the right shoulder is created. Ideally, a burst of activity both in price expansion and volume cements the pattern as it decisively breaks through the neckline."

I am no expert in Head & Shoulders patterns. Everybody but me seems to be able to see them develop on stock charts. Still that doesn't mean they aren't there. If it does pan out to be a viable pattern it is another indication of support for the market in this area.

*Long S&P 500 related ETFs in client accounts.