Multiple Head & Shoulders Patterns

Finally the market has broken out of its boring funk and has established a direction - down. Which is what I've been waiting for the past two months.

The graph above is particularly interesting. It's of the NYSE Composite index (symbol $COMP), and I've found not one but three head & shoulders patterns (I have marked the shoulders with S and the heads with H to make it more clear). Remember, these can be both bearish (the normal kind) or bullish (the inverted kind).

The first two you seen, which I've highlighted, are inverted, and you can see the subsequent price increases. The third, and most recent, is the regular head & shoulders, although this pattern is still forming and has not yet broken the neckline at 3,195. A break below this should lead to a fall to at least the 2,900 level.