An interesting week in the markets.
Stocks rebounded sharply and regained all losses of the previous weeks.
We now have a textbook reversed head and shoulder pattern in the S&P 500 Index (click for larger image):
The odds are good for a break out to the upside here.
Not only is our momentum indicator just turning upwards, but we also have lunar Green Period continuing into early May. If we continue higher then the next target becomes 1400-1450 on the S&P.
Any failure to move above 1350 in the next weeks will mean a rather weak Green Period, and would point to an ongoing correction in May.
Stay Tuned, Danny
LunaticTrader Blog 