S&P 500 2022 Crash like 2008 ?
$S&P 500(.SPX)$ $NASDAQ(.IXIC)$ $Amazon.com(AMZN)$
During 2008 crash , S&P mada a head and shoulders pattern on the charts and few weeks later it crash.
In 2022 ,this is again making a similar head and shoulders pattern
What is a head and shoulders pattern?
Head and shoulders is a bearish chart pattern
It comprimises of a left shoulders, the neck and the right shoulders.
Most of the time there is a bearish divergence between the left shoulder and the neck.
Volumes play a important role in this pattern
The volumes are very low when the head is formed , but they rise significantly when the right shoulder is forming.
The target of the pattern is the height of the neck.
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