Investors fear S&P 500 could plunge

By David Franklin is director in charge of retail funds at Christows It has been said that the ...

By David Franklin is director in charge of retail funds at Christows It has been said that the S&P 500 Index is in the process of forming the mother of all head and shoulders patterns. The first shoulder was formed in 1998 to 1999 by the index rising from 980 to 1,190 and falling back again to 980. Over the past year, a similar pattern has emerged, with the index once again rising from 980 to 1,180 before falling back again. These two periods represent the shoulders. In the middle is the head, the speculative bubble of 1999 to 2000 and subsequent collapse. Techni...