📈 Head and shoulders formation on US500

🔽 Sellers take the lead before the start of the US session, will the downward movement be extended ?

Today's European session began in a mixed mood, with volatility remaining low in the early hours of trading. However, after 12:00 pm BST sellers took the lead and major European indices are trading lower. A pullback can also be seen on the US index futures market, which are also trading lower before the start of trading. 

Looking at the US500, we are observing an attempt to break down the neckline of the head-and-shoulders formation, which usually heralds a trend reversal. However, it is worth noting that the support zone, resulting from previous price reactions (4,180 pts), is close by, and only its breaking below may result in a deepening of the correction. 

One should be aware that the market may become more volatile once key US data (ADP report) is released at 1:15 pm BST

US500 H1 interval. Source: xStation5