CHART OF THE DAY: Here's The Broken Neck Bone That Everyone Is Talking About

button more charts
button chart prev
button chart next

With stocks sliding again, and people desperate to look for an explanation of what’s caused the sudden panic, technical analysts are talking about a broken head and shoulders pattern.

As the chartists see it, you have that “head” for the May peak, surrounded by two “shoulders” in July and March.

The blue line… the neck bone that we just broke through.

Make of it what you will.

chart of the day, s&p500, august 2011

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.