When Head & Shoulders Attack...

Short sellers get squeezed...

RIMM - set up a H&S pattern. Just when the 200-dayMA was proving resistance a late-day rally last week looks to have squeezed shorts. There was a hidden divergence buy signal here with a higher low in price and lower momentum low.  Now that the 20-day is crossing the 200-day we either see a correction into 200MA support, or continuation until the 50-day comes into the 200-MA:

GLD - a H&S squeeze breakout

FCX - Shooting star today, but the squeeze was on a few days ago

GOOG - It had a chance to sell-off today, but closed higher and could force a squeeze above this resistance level:

V- a tight channel down, but 200-MA resistance overhead after this nice squeeze run

AAPL - looked like a H&S going in to last week.  The momentum oscillator broke out of a momentum divergence, but an abandoned baby candle pattern off of the 20-dayMA is still causing some price drift.

AMZN - getting a boost here from this triangle breakout, which looked to me like an evening doji star off of the $180 rejection last week.  A measured move out of this triangle isn't very large, so whichever way the momentum goes it can still show itself as divergent:

MON- looked like a good rejection on testing that breakdown zone, and looked to be following through....until it didn't, and shorts got squeezed again.  The momentum indicator broke out with price.

MOS - This complex Head & Shoulders is either looking for it's squeeze, or may be wearing its weakness on its sleeve.  Support from the 50-day, resistance from the 20-day and a lot of clear air below:

turn your head and cough

Shorts squeezed again!  lol
Right back into our pitchfork, safe and sound

Price opened just under the 20-day MA, which coincided with the 50% retracement of our most recent swing highs/lows.  A strong breakout candle, a close above the 61.8% retracement and a W-bottom pattern breakout set up today.

Price gaped up big today and didn't go any further than a 50% extension based off the Previous day's Close to today's Open.  This also coincided with a 150% extension as measured off of the previous day's range (low to high):

Being that the year is in it's last month, take a look and see where we are on the grand scale.  The S&P500 yearly chart puts us right under a confluence of resistance; the 23.6% level from the 1960 lows to the 2007 Highs and a 61.8% level from the '07 Highs to '09 Lows

However...The more times price tests Resistance...

amazing how well that 50% level was our S/R zone

the Obvious

SPY broke down from an ascending wedgeThere's a clear range of where the buyers and sellers are lined up
and there's a clear consolidation pattern developing that can resolve quickly (and should resolve quickly and with volatility, as one side will have to cover).A slightly bigger picture shows the "Death Cross" setup. When a moving average cross happens, typically the first trade in the direction of the crossover is to fade the price pullback. In this case, the 50-MA crossed under the 200-day, price pulled back to the 200-MA then continued to sell-off. It's sketchy down below from here because of the double-bottom potential.Then, on the weekly, there's this Bullish Wolfe Wave setup taking shape...

updated charts

TLT Wolfe Wave target finally reached
TLT updated from {here}
USO updated from {here}
SPY updated from this morning {here}Shows a similar break-down structure as the USO chartSPY weekly chart (action/reaction lines), updated from {here}

base breakdown example

A good example of dying pace in GOOG today.
Bounced twice off of the initial low before continuing lower, while later Support was turned Resistance. Tough part would have been gauging a downside target, hmm.

RIMM wolfe wave

Bullish wolfe wave in RIMM that has a couple of things going for it;
- Strong Volume
- a gaped-down hammer candle
- a higher low than the previous swing lowSeen in a clearer light, price is at the bottom of a small downward-sloping channel, where we can plainly see symmetrical cycles of similar length (Regular Cycle 9-bars, Inverted Cycle 7-bars, and most recently an Inverted Cycle which is, so far, 8-bars in length).
Further illustratedThe price target for the next Inverted Cycle (should price not take out the current low) would be the top of this current channel, around $54. While the Wolfe Wave target is up towards the gap fill area ($57ish).

XLF

XLF looking interesting here within a range. Should price continue tracking towards $15 a strong breakout may occur

a recurring theme

On the heels of a previous post...Short setups in RIMM and FCX
First, we have an established range with S/R which will give us potential targets on the breakdown move (also worth noting, the overhead Supply in this case is an earnings miss gap down):We get a few bounces off of support, only to see buying interest wane before the breakdown:
Same situation in FCX

How fast the tide turned:RIMM ended the day in a long-legged doji after tagging it's 50-SMA

short setup

Along the lines of a previous post, here's a similar setup in VMW today:
Price is within a range with established Support/Resistance levels
Price broke down once buying interest waned, ideal entry is on a mini bear flagend of day update

SPY midpoint

The SPY is exactly half way between the April 2010 highs (give or take a few pennies) and the June 2010 lows (+/- a few pennies), and 0.72% down on the year so far. Amazing that it has taken 45-days from high to low and only 16-days from low to midpoint. While it took 10-days from midpoint to lows.
Possible bearish scenario is the overhead 200-SMA with a bearish Wolfe Wave setting up

RIMMinent

A breakout or breakdown looks imminent in RIMM from here:
Get in on the breakout/down, or wait for the first pullback.

FCX cont.

Recent updated chart. Worked nicely. Looks to me like a correction of some sort could be expected for the early part of this coming week.

updated from here
FCX reports tomorrow morning at the open.
So far, it has had this nice channel setup, where the breakout cycle is similar to a shoulder (61.8% retracement of the previous cycle):The larger picture is still down for now
Price is currently right up against the 50-MA with the 20-MA just below
intra-day S/R:

One chart to rule them all...

AAPL today during the press conference, short squeeze followed by a resumption of trend.
A chart to save for the scrapbook.