Intraday Look and Analysis: The Big Laydown

http://www.youtube.com/watch?v=pnexYvPtYew

Either the bears who are heavily short looking for a further washout or bulls now long and strong will likely need to make a big “fold” soon.

As you can see on the intraday 5-minute SPY chart below, after the earlier sharp and sudden rally there is a head and shoulders top setup into the final ninety minutes of trading. Of course, patterns can morph into larger ones. But bulls should negate this pattern and close this at the highs to cement an array of hammer candlesticks on daily charts into next week. Bears, as usual since September, are looking to spoil the fun and trap another group of bottom-callers.

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