Chart of the Day - Thursday, September 28, 2023

Today’s Chart of the Day was shared by Ian McMillan (@the_chart_life). We're witnessing the David vs. Goliath of Head & Shoulders patterns right now in the S&P 500. Ian points out that, in the process of filling the gap from June 8th, S&P 500 futures have formed what appears to be a small Head & Shoulders pattern (blue box). This 3-day H&S bottom will attempt to invalidate a much larger, and more obvious 3-month H&S top. A close above 4,350 would confirm a failure of the 3-month H&S top that everyone saw. As mentioned on Monday, failed patterns are often more powerful than successful ones. If David defeats Goliath ($SPX > 4,350), we could see a sharp reaction higher.