Head and Shoulder on Major Markets

Here are the charts of the major market proxies, namely DIA, SPY and QQQQ notice the head and shoulder formation on their respective chart? This pattern usually indicates a near term top. We do not know yet if this topping formation will materialize we are waiting for further confirmation from this week's price actions. At this moment the proxies are quite oversold and a bounce are very possible.

One thing though, the present situation requires adjustment on my trading plan. I can choose to play/buy the bounce (snapback) from here but I'll be lowering my usual number of shares and will aim for a lesser profit. Or, I could stay in the sidelines and wait for a clear trend since the action from here on might be a bit volatile. I'll be really picky in case I buy on this dip.

A brief notes are included below as my overall reminder for this week.

The QQQQ is now below the 50MA and the H&S neckline have been broken. The RSI, Stoch, and MACD are all pointing down. The slope of the 20MA is down.

The price on SPY is below the 50MA. The shorterm 20MA, blue line have crossed over to the 50MA and the H&S neckline have been broken. Trendlines on Stoch, and MACD are all pointing down.

The 20MA, blue line on DIA have crossed over to the 50MA and the H&S neckline have been broken. Price is trading below the 50MA. Blue trendlines on Stoch, and MACD are all pointing down. However, the stochastic indicator on each of these ETFs are in the oversold level. Be extra careful tho the overall state of the market is weakening.