Yesterday I wrote," The daily stochastics has reached oversold zone making it ripe for a bounce or sideways move ". The bounce came as expected on good volumes with a breakout from the downtrendline drawn from the top of 1227 . This is bullish.
A potential bearish head and shoulder formation is seen with the neckline at the lows made at 1173.The S&P 500 is now at crossroads and only further action can tell us whether the top of 1227 is going to be scaled or the neckline at 1173 broken for further downsides.
Happy Trading !!