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Head & Shoulders Pattern, Trouble Ahead?

Technical analysts including Greg Troccoli of Opalesque are closely watching the S&P.

On Fast Money's Halftime Report, Troccoli revealed that the latest trend lines are forming the technically important pattern called the “head and shoulders pattern.”

And it's a very bearish signal.
"If the S&P trades below 1035 then the head and shoulders pattern will be complete," he explains.

Should that happen, "I’d interpret the pattern to mean we are forming a large top in the market and would expect to see negative pattern for the next 4-6 months."

That's right, weakness for nearly the first half of 2010. However, before you pull your hair out, you might be relieved to know there's a caveat.

It’s not a done deal. "If the S&P take out recent highs – around 1075 then the pattern is broken."

What do you think? We want to know


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