This is 1 scenario that could play out. If we get to the 50 dma @ 4224 and fail, that would be the right shoulder coinciding with the left shoulder that happened on 1/22/2014.
If it happens at the end of this week, the "sell in May" crowd is going to be especially loud and this bearish pattern would help their argument.
Tuesday, April 22, 2014
Walter Zimmerman, the top technical analyst at United-ICAP, charted the performance of a $10,000 in 1950 if you sold in May, and then bought back on November 1.
"The other half of the proverb is ‘Buy Back on Saint Crispin’s Day,’" said Zimmerman. "That would be 25th October."
"This advice has shined the brightest in those years with the most extreme bullish sentiment going into May."
Check it out: