October 28, 2020, 1:06 pm EDT
Dow Jones Head and Shoulder Pattern
Head-and-shoulder pattern is a bearish top-out pattern. In this case, we see a rising angle version of the head-and-shoulder. When the neckline is broken, it means that uptrend is over and downtrend starts.Furthermore, the neckline becomes resistant if rebound occurs.
Another important thing is that the 50 Day-Moving-Average (DMA) line is gone with 200 DMA to be tested. It is a very bearish setup and may result in sharp sell-off and long downtrend ahead if 200 DMA is also broken.