Somebody please help me take the foot out of my mouth! Another bad call from my part, here is the second whip-saw in the row (third actually but I didn't fell for the first one) during this crazy rally. It never happen before, I mean yes, I've got whip-saws but not three of them during the same rally. This is the most volatile rally I've seen in years. OK, bulls, I understand you are very confident, very powerful these days but why are you letting SPX slipping 60 points in a matter of days? Just to annoy me?
I guess I have no other choice but rely on 4 hour chart which, once again, did not get whip-saw. Or even better I should forget about making money on the downside and focus on the next rally whenever is going to happen.
The most interesting chart at the moment is the weekly chart. There is there a very nice support line that was actually crossed during the fake plunge but only for one day. Some people may argue that market is developing a "head and shoulder" with the support line I mentioned above as the "neckline". Well, this pattern is possible with one condition, that the "neckline" to be crossed before SPX making another all time high.
It doesn't look like a textbook "head and shoulder since the right shoulder it is supposed to be shorter than the left one (not the case here) like it was in the case of AAPL which predicted a drop to 360 (AAPL actually dropped to 380, but this was a good enough prediction).
All the best!