IF A RIGHT SHOULDER FORMS followed by a threat of the $103 neckline in the near future (about another quarter worth of price activity), THEN by the end of the summer we will have a good idea of whether or not this market is planning to retrace significantly into the last year’s worth of price bounce. If this does form a topping H&S, then the projection for the retracement will be ca $85. That would be the range of Q2 2009 (ca $92/$82).
IF A RIGHT SHOULDER FAILS TO FORM then the market will build whatever base it needs to move forward into a new leg up. It will be interesting to watch the unfolding of The Drama Of The Bulls and Bears.
Disclosure: None currently