Global Outlook

Head & Shoulders Bottom?

Contributed by eResearch

By Bob Weir

Technical analysts sifting through their tea-leaves are having fun trying to figure out which way the market is going to go. Fundamentalists (I’m not referring to a religious cult) are wondering whether earnings or economics are going to be the catalyst to move the indexes out of their current range-bound lethargy.

The following charts (S&P 500 and the S&P/TSX Composite) show that a possibe head-and-shoulders reversal could be forming which, if successful, would shake the indexes out of their stupor and propel them through their resistance-forming moving averages.