As can be seen from the above Dow and S&P charts, the 2% drop for both the indices on Tuesday has broken the respective necklines to confirmed the formation of the 'Head and Shoulders' reversal pattern. Dow will be heading for 7500 and S&P will be heading for 835 as their respective minimum target
Nasdaq has yet to confirm its 'Double Tops' formation. It was able to hold above the neckline at the close. However it is only a matter of time before the neckline is broken. If Dow and S&P go south, Nasdaq cannot go north by itself.
As can be seen from the above Dow and S&P charts, the 2% drop for both the indices on Tuesday has broken the respective necklines to confirmed the formation of the 'Head and Shoulders' reversal pattern. Dow will be heading for 7500 and S&P will be heading for 835 as their respective minimum target
Nasdaq has yet to confirm its 'Double Tops' formation. It was able to hold above the neckline at the close. However it is only a matter of time before the neckline is broken. If Dow and S&P go south, Nasdaq cannot go north by itself.
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