$ES: The November Rally Could Complete the Right Shoulder of the Head and Shoulders Reversal Pattern

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$ES $SPX #Head and Shoulders #toppying

Today was the worst day for trading in 2023. Look at that miniscule daily candle we got on the S&P 500 cash index chart:

$SPX Daily chart, Sep-Nov 2023

On Friday we got the lowest daily trading volume for the last 12 months.

Look at several weeks surrounding Thanksgiving 2022:

S&P 500 cash index, Daily chart, Nov-Dec 2022

The same drop in volume and the same doji candle.

Calm holiday week was followed by a two day decline. That two day pullback was followed by a strong rally to a higher high. Note that the rally into Thanksgiving 2022 was the left shoulder of the bearish reversal H&S pattern.

I think that November 2023 rally could make the top of the Left shoulder of a new bearish reversal head and shoulders structure.

That means its very likely we will get another push higher after a 2-3 day pullback.

ES-mini 120 min chart

4,500 has a very good chance to become a neckline of the H&S bearish reversal pattern. Ideally I woudl like bears to push ES-mini down to that support. Failure of bears at 4,500 would most likely inspire bulls for another strong leg up targeting 4,639.

Such a rally would form the Head of the Head and Shoulders bearish reversal pattern. And it should be followed by a drop under the neckline 4,500.

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