A short term bearish head & shoulders pattern has triggered in the S&P 500. The problem with trading this signal is prices plunged in the futures market overnight which caused a gap down on Thursday. I’ve used the SPY ETF to illustrate the gap.
A bounce into the ES 1680 area, which is a back test of the “neck line,” would signal a short entry. That would also fill the gap down from today. The short target would be down to the 1650 level in ES.