Did you sell or short when the head and shoulders top produced a close below the neckline at 1360-1370?
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The weekly chart of the CurrencyShares Japanese Yen Trust ( FXY) shows that a three-year head and shoulders top appears to be forming.
That also leaves them with a potential head and shoulders top in place (marked S, H, S in the chart) similar to that in October, 2007.
What started as caution turned into a bearish slant by early April as the market formed a head and shoulders top pattern, a pattern that usually marks the top of a major inbound move and can lead to significant downside.
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For Chris Johnson , managing quantitative analyst at Schaeffer's Investment Research, publisher of Bernie Schaeffer's Option Advisor, the overarching and ominous theme is the head-and-shoulders top the market seems to have formed over the last four years.
This action raised the possibility that a head-and-shoulders top was being formed with the left shoulder (LS) in July and the head (H) in October.
And on that mantra, earlier this year, I talked about the head-and-shoulders top pattern that was coming into play over the course of the summer.
For instance, the homebuilders completed their major head-and-shoulders top formation in 2006, well before the housing market collapsed.
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The daily chart shows a completed head-and-shoulders top formation, as the neckline (line a) was broken in July.
For chart heads like me, that would be the neckline of the giant head-and-shoulders top seen at that time.
The iShares Russell 2000 Index Fund ( IWM) still shows a potential head-and-shoulders top formation as the neckline (line e) has been tested over the past two days.
This bounce was necessary to complete our head-and-shoulders top pattern.
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These folks, for instance, divine that something called a "head-and-shoulders top" formation--a market high above two high points on either side--means that stocks are poised for a downward move.
The chart shows the head and shoulders pattern that Apple traced out at its top.
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Then to work, starting with the front, blow-drying into curls and pinning them to the top of your head, sectioning your hair and pulling it in front of your shoulders to make finishing touches in precisely the same way.
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