Friday was an ugly day with a gap down and continuation, but we managed to hold support by way of the right shoulder of the 60 minute inverted head and shoulders we pointed out on this blog. We wound up forming a 60 minute hammer into the close.
Friday's lows are now key. While the pattern may still be valid if the right shoulder is broken, the right shoulder holding makes the pattern more authentic and will pick up more interest.
I'm going to be watching for a gap down Monday for a buying op for a trade. From there, I'll watch to see how the Bulls react before making my next decision. If they show some initiative, I think we could get a move to the neckline pretty quickly. If the bulls are absent, then watch for a retest of the May lows and a possible double bottom to setup
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