I don’t usually call attention to head-and-shoulders patterns because they are everywhere one desires to see them. In this case, however, the bullish reverse H&S shown in the chart (see inset) looks too pretty to ignore. It implies that a rally likely got under way Friday that could push this sack of hot air to a test of all-time highs near 338 recorded in mid-February. If this should occur, the mood on Wall Street would likely be so giddy that we’d need to guard against being suckered into a possible bull trap. It would surely be a doozy, considering how bullish sentiment is.
QQQ – Nasdaq ETF (Last:316.01)