Art Cashin, director of floor operations for UBS Financial Services,weighed in on the oft-discussed "head-and-shoulders" pattern, taken as gospel by many analysts — but which seems to be disrupted now.
"The trouble with the head and shoulders pattern is it started to get accepted by everybody," Cashin said. "And the market likes to confuse the most amount of people — usually the majority."
The pattern "broke down through the 'neckline,' which by classical, technical thought, should lead to 820, 827. But instead, the market reversed back up through the neckline."
"We have to watch the area around 830 — the right shoulder."
Cashin called this reversal of classical theory a "failed breakdown syndrome" — which, he said, could produce a "super-rally" scenario.
http://www.cnbc.com/id/31922179
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