The price action today took us bellow the neckline of this large head and shoulder formation at 1850. A similar pattern was seen before the bear market in 2007-2008 and other major price reversals. The Head and Shoulders formation is a very reliable signal of a market reversal. I think we are now moving into a major market reversal and bear market that could last 6-18 months. Initial target is the 1600-1500 rang from the support of the 2008 top and 2013 rally. However if that does not hold we could easily be going back to 1200-1100.
