The Mother-Of-All Inverse Head and Shoulders patterns was completed yesterday, with an eye on 1220-1250 as its target price. Obviously we won’t go straight up from here, and that is why I am sitting on my hands waiting for a pullback to start adding some new long positions. The FOMC Statement is coming out this afternoon and could provide that catalyst that we are looking for. For a historical reference for what we are looking at, look no further than the sell-off in January/February, that played out practically the same exact way this IH&S pattern did and you’ll see what is likely in store for us.
