S&P500 vs STG/DEM : Triangle Right Shoulder ?

• Technical analysis = Pattern recognition.
• Notice the similarity between the STG/DEM quarterly chart and current S&P500 weekly chart. Interpretation is time frame invariant.
• If history repeats, then it is possible that S&P500 is trying to form a triangle currently.
• The Bad News : If so, then we are probably some weeks away from breaking down and more upside squeezes on bears can be expected. At a minimum, there should at least be one big uptick to form a more complete triangle. Equally, do not discount possibility of an upside break instead.
• The Good News : Upward sloping lower boundary of the triangle means breakout point can be set higher than the SHS neckline at 1012.
• In view of the above, I will probably need to trim my short S&P risk somewhat to survive any squeeze and to create room to sell rallies.