NDX 4-hour chart: Head & Shoulders

The Nasdaq just closed below the line that mattered.

October 13: on the four-hour Nasdaq chart, a head and shoulders top confirmed today.

It is three highs: the middle one highest, the two outer ones lower and roughly level.

Connect the two lows to draw the neckline.

Confirmation comes only on a close below it.

The neckline is 30658.4, the measured target is 29721.3, and a close above 31089.3 cancels the pattern.

This setup is still in play, and neither the target nor the invalidation level has been hit.

A pattern never guarantees its target, and the same shape fails just as often.

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