S&P500 - Head & Shoulders Pattern Marks End Of A Trend

15 minute bars show a bearish head & shoulders pattern formed over the last 5 days. In addition, the RSI shows how yesterday's move marked the first 'oversold' zone in two weeks, and we see this as bearish too. Why do we interpret oversold as bearish? Because recent history shows that oversold (overbought) moves are followed successively by more oversold (overbought) moves. The move yesterday therefore points to a reversal of the recent rally.