Saturday, June 23, 2007

Head n Shoulders

Just lookin' at some long term charts today. In particular, the S&P500 over a 10-year time frame. Straight away there looks like a Double Top setting up (even though double tops are more of a shorter term pattern). Also, I can see the potential for a head-and-shoulders formation; which would entail a run-up beyond our current highs, a sell-off, an attempt at rallying before a further sell-off that would bring the index down into the 800 range. Of course that would be in the course of the next 10 years. But at least it would give us an idea of where to expect the primary trend to run. Who knows what might happen.

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