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Subject:  Possible SPY Head and Shoulders Date:  8/3/2011  2:31 PM
Author:  denpup Number:  2470 of 3345

Head and Shoulders reversal on SPY, needs enough price drop on volume to confirm the pattern:

Edwards and Magee (Technical Analysis of Stock Trends) say that a confirmed head and shoulders (a drop below neckline of 3% of the stock's price on good volume) is a reliable predictor of a reversal in price down from the neckline equal to the same distance as neckline to top of head.

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