The SPX H&S Pattern that many of have been watching for some time has completed and the neckline has been broken. Price may drop hard from current levels in a large wave 3. While it is possible price may rally from here in a 2 of 3, I think it is more likely that the neckline will hold as resistance and price will fall hard and fast from here after a negligible pullback. I have taken a short from the neckline break. The H&S target is 860 however I think we will go much lower than that. Keep stops at 1050. There is currently a nice 5 waves down from 1048 on the 5 minute so we may pull back to the 1030/38 area before continuing lower.
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