Ruh Roh

On the initial retest of 1040 back on June 7th, I offered up an SPX chart with potential downside targets in my post titled

. Well, after holding the low and taking a one month detour the SPX has once again returned to this infamous line in the sand. Though this time the bears came back with a vengeance and finally mustered the strength to breach this long time support level. The aforementioned detour turned out to be the formation of the right shoulder of a longer term head and shoulders pattern six months in the making. Rather than highlighting potential fib levels as displayed last month, today's graphic focuses on the topping pattern recently completed with two potential downside targets - the prior key resistance of 950 and implied target of the head and shoulder pattern. It strains the obvious to point this out, but keep in mind these are longer term levels to watch out for and aren't necessarily in play over the next few days (click image to enlarge).

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