Near Head and Shoulders Chart Pattern - Dow 1928 to present

For those of you who are aren't familiar, a head and shoulders chart pattern is bearish.  Actually, very bearish.  There's no H&S in this pattern, but it comes pretty doggone close.  We missed it by a hair.

To explain, a H&S will have a triple peak chart pattern, with the peak on either side of the middle peak being of equal size, and the valleys between to be about equally deep.  Now look at this price chart going all the way back to 1928:

The left peak is just under 11k, the middle peak is about 14k, the right peak is about where we are now

This is sobering to me, because one stock that I traded many years ago exhibited this pattern.  It crashed and never recovered.  This is a proxy for the US market, folks.  Think about that for a moment.

If charts mean anything at all, we are at a critical time right now.  We may be lucky, but I'd say we're not out of the woods yet.  That's because the peaks should be about equal, and the most recent peak went a wee bit too high.  That could have invalidated the chart pattern.

By the way, this isn't a bullish chart.  It looks sick in another way, with all of the recent ( reckoning in years) wild price swings.  Those swings are especially wide at the moment ( reckoning on a daily basis), in case you didn't notice.

Update:


Please excuse the typo. I crossed it out and corrected it above.