NYSE Composite prices have plunged through the "neckline" of a classic "head and shoulders" pattern.

 

Here's a brief description of the "head and shoulders":

 

The high of an initial upward move is the Left Shoulder. After a decline, another upward move takes prices to a higher high, or the Head. A second decline follows the head. A third rally then takes prices to a peak below the high of the Head, and becomes the Right Shoulder. The Left and Right Shoulders are often similar in duration and extent. A trendline connecting the two lows is called the Neckline.

 

On July 20, the Short Term Update offered this analysis:

 

 

Here's the chart that subscribers saw:

 

 

 

Now that NYSE prices have sliced through the neckline, what's next?

 

The August 3 Short Term Update says: "Sometimes the size of the ensuing decline can be approximated." This issue of the Update provides you with a price target and up-to-the-minute charts.

 

Plus, you'll see how the dramatic price action relating to the "head and shoulders" pattern fits in with an eye-brow raising Elliott wave pattern.

 

The Short Term Update keeps you on top of the questions: What kind of stock market trend is unfolding now? And where is this trend going? 

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