Bearish Head-and-Shoulders on NYSE Comp

Textbook example of a head-and-shoulders pattern. We have a strong bullish uptrend to reverse, which has been in place since March. The neckline is well defined and connects with the very important June 8th "internal top" for the markets. After June 8th, we began to see big declines in market breadth, which accelerated in August. The neckline also served as resistance during today's rally. This confirms our bearish outlook overall for stocks.