July 6, 2009 - SP500 Bearish Head and Shoulder Pattern

This will be a quick update on the S&P500... there is a bearish head & shoulders pattern that has formed here. We tried to take out the 950 level, but were unsuccessful and couldn't come back to retest. The 50 day moving average is broken to the downside and a test of the 200 day moving average, which coincides with the local support level at 880, will tell more of the state of the market.


There are volume and MACD divergences which further indicate the bulls are running out of buying power and the bears are becoming stronger.

Let's begin the trading week....