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HSBC Warns: The stock market 'is putting in a bigger top than eight years ago'

From businessinsider.com

One major analyst note sent out early on Monday is calling the top in US stocks — with a potentially colossal slump to follow. Murray Gunn, the head of technical analysis at HSBC Bank, is out with the call, which says the Dow has put it a massive "head and shoulders" top. Here's Gunn: A Head and Shoulders top pattern occurs when, after an uptrend, the market makes a higher high than the previous reaction high, then a lower high and finally falls through the “neckline” connecting the two reaction lows. Based, on this, Gunn says the Dow Jones index "could have put in an historic top, one that may well turn out to be ... (full story)

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