The Present State of Things, Part 2 (of 4)

Zooming in a bit, we can see that the bear flag conclusion took the form of a head and shoulders pattern, a bearish technical pattern. Notice the right shoulder, which, if the market continues to go down from this point, we can then assume has completed. It really does look textbook at this point, having reached the same height in both shoulders before breaking down.

Having first broken from a bear flag or pennant, and then forming this classic reversal pattern means 2 points for the bears.

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