Stock Markets Forecast Update

I commence with my gratitude to The Creator

SPX bearish flag daily chart 9-13-11

SPX H&S pattern hrly Chart 9/13/11

In my last post, I stated that there are two case scenarios, with H&S pattern, markets gap through the neckline or markets find minor support at the neckline and then rebound a little.  Which markets chose to do so. Market has come up-to the 50%  of the last swing or the right shoulder. However, once the bounce fades away, markets shall drop and tumble hard potentially starting as early as 09/14. On daily scale, market is developing a bearish flag, and break through the lower support line is expected and minimum target is to retest the lows of May last year and even 910 area for S&P-500.

Stock Markets Forecast 9-11-11

Stock Market Forecast 9-11-11
SPX Chart

I commence with my gratitude to The Ultimate Knower

Markets have dropped as I had foreseen a Head and Shoulder pattern being developed on 0/9/06-09/07 when market was rising into new swing high, around said dates.

Market has dropped to the neckline of the said and now properly formed H&S pattern. Usually stock market has two options at the said level, find a minor support, only to fail immediately or just gap and break away from the neckline. If that gap occurs, which is very likely then, market shall drop at least 65 points to find another technical support at the 08/08 week lows.