Mr. Fat Head Returns? If So, It’s S&P 500’s Turn

We used to talk about Mr. Fat Head on the HUI (see chart at end of post). That was the big H&S targeting 100 that not many thought was doable back then. I was reminded of Mr. Fat Head when using the ‘Live Charting‘ link at the above right. There you can quickly manipulate charts and time frames thanks to TradingView‘s dynamic charts. It’s really cool.

The first chart is a weekly view, showing a potential H&S, the resistance that would put in its right shoulder and the neckline. If actualized one day, it measures to 1600.

s&p 500 weekly chart

 

Then using TradingView’s handy tools we zoom out to a monthly view and find that voila, the H&S target is pretty close to rock solid long-term support on the SPX.

s&p 500 monthly chart

 

As for the original Mr. Fat Head, here he is. Being a monthly chart, it was a bigger and more cataclysmic thing than what is going on with the weekly SPX. HUI’s H&S breakdown came well after we had already gone into strict defense mode due to HUI losing what we had called the ‘460 parameter’. But a final chance for Huey to prove himself would have been to negate the H&S at the neckline around 375. He didn’t and finally hit 101.28 this past summer. Amazing.

hui monthly chart

 

As for the S&P 500, it’s all still just theoretical. But so too was HUI until the neckline broke. SPX had better hold 1867 or it is going to 1600. Not only is that the measurement, but there is not a shred of support if 1867 goes.

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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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