Taking a Look at the S&P's Small Head and Shoulders Pattern

"A man must be big enough to admit his mistakes, smart enough to profit from them, and strong enough to correct them." -- John Maxwell

NEW YORK (TheStreet) -- Great action today as we continue to consolidate in markets while some leading stocks really moved well like Tesla (TSLA), (TWTR), Twitter (PANW) and SunPower (SPWR) to name a few, none of which I am in at the moment.

To me it looks like we need a few more days still but there are some really great buys ready to go at any moment now.

I didn't buy anything today since a few more days rest looks to be in order and the best scenario.

Let's move right into the charts.

The SPDR S&P 500 ETF Trust (SPY) is holding the 193 support area so far but it does look to be setting up a small head and shoulders now with a rising right shoulder.

If this pattern plays out it would take us perfectly back to the 190 breakout level and fill a gap.

That would be a buy area and something we could see by weeks end. Of course I could be wrong but this is what the chart is telling me tonight.

Have a wonderful evening.

Warren

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

>>Medtronic’s Play for Covidien Is No Solution for Silicon Valley

If you liked this article you might like

Hot Cars With Wait Lists

Google's Artificial Intelligence Chief Thinks Elon Musk's AI Fears Are Overblown

Don't Let Tesla's Break to New Highs Surprise You: Chart

Tesla Could Soon Be in the Restaurant Business

Tesla's Stock Is Hanging Off a Cliff, Jefferies Says