SPY (S&P 500 ETF) has just hit the measured target of the Head & Shoulders topping pattern that I’ve been highlighting in recent videos, including the very timely & profitable short entry on the backtest of the neckline during this video posted back on Oct 12th. The previous & updated daily charts (including a screenshot from that Oct 12th video highlighting the backtest & measured target) are below (all 3 previously posted daily charts Aug 11th, Aug 16th, & Sept 1st, highlighting all the next sell signals & likely path of the S&P 500 along with the Oct 12th video screenshot).
SPY daily Aug 11th
SPY daily Aug 16th
SPY daily Sept 1st
SPY Oct 12th video screenshot
SPY daily Oct 27th
Bottom line: In addition to the multiple objective short entries & price targets on those previous charts, the fact that SPY has now hit the measure target of the H&S pattern increases the odds for a reaction here (and next week) so the R/R for adding new shorts or remaining heavily short just isn’t very good right now, at least until the next key support levels on the indexes & market-leading stocks are clearly taken out. Typical swing & trend traders might opt to tighten up stops on shorts (or longs) or reduce some exposure as well head into the weekend as next will could just as likely see a big drop or a big pop in the market (i.e.- roughly bilateral risk… not worth betting too hard either way IMO).