The SPY could develop a head and shoulder’s pattern.

Yesterday evening on the “Trade Off” show I did with Chris Weston from Pepperstone, I discussed the setup in the SPY. After the close today, FB (Meta) missed earnings and the S&P sold off after hours. With the rejection of the 61.8% Fibonacci retracement at the 458 level, if tomorrow we end up lower, traders may see a long term head and shoulder pattern develop in the coming months. The one clue that really stands out to me is the dropping volume of the strong 8% rally the last few trading sessions.

Blake Morrow