2007 SPY H&S Top Characteristics:
-Massive rising/ascending wedge from 2003 low
-1st breakout of wedge is tip-off ref. mkt topping soon; returns to rest on upper trendline
-2nd move remains above upper trendline until it penetrates
and bounces off lower wedge trendline (establishes neckline and LEFT SHOULDER)
-3rd bounce forms head and returns to lower trendline (i.e. neckline)---this is the HEAD
-4th (and final) bounce established RIGHT SHOULDER
and returns to lower trendline (i.e. neckline) and readies to break-down through neckline, confirming the H&S pattern
-Massive rising/ascending wedge from 2003 low
-1st breakout of wedge is tip-off ref. mkt topping soon; returns to rest on upper trendline
-2nd move remains above upper trendline until it penetrates
and bounces off lower wedge trendline (establishes neckline and LEFT SHOULDER)
-3rd bounce forms head and returns to lower trendline (i.e. neckline)---this is the HEAD
-4th (and final) bounce established RIGHT SHOULDER
and returns to lower trendline (i.e. neckline) and readies to break-down through neckline, confirming the H&S pattern