S&P 500 decline extends to 1%. Head and shoulders pattern emerging?

Technical Analysis

It’s been a one-way trade in the US stock market since the strong ISM services reading and it’s continuing. Last week, I highlighted the possibility of a head-and-shoulders pattern shaping up on the S&P 500 and today’s drop adds to the case.

We’re still a long ways from breaking the neckline but I suspect the complacency in this market could quickly turn to angst.

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