CHART OF THE DAY: The Mother Of All Head And Shoulders

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Reader Josh Clark writes in to protest our discussion of the S&P “Golden Cross.”

For technical analysis to have any use, it can’t just be based on moving averages which any old computer could identify, but rather it requires human observation.

And to that end, he sent us this chart, which shows that not only is the market currently in a mini “head and shoulders” pattern, this head and shoulders pattern is in itself the second shoulder in a larger pattern, which apparently means the market is doubly doomed!

Or not!

chart of the day, dow jone sindustrial 1987 to present, jan 30 2012