A bullish pattern on the S&P 500 has been triggered, says Frank Cappelleri, Chief Market Technician at Instinet.
Cappelleri notes three important bullish charts for the S&P:
The S&P closed above the neckline of a short- to medium-term inverse head-and-shoulders pattern yesterday (15 October).
Looking at the bigger picture, the daily chart shows the key trendline has continued to hold.
The October gap has not been re-visited and last week’s bearish pattern (double top) was voided by yesterday’s upward move.