Head and shoulders. Wed July 8

The US chartists were talking about the possibility of a head and shoulders pattern signalling a top in their market when I was watching Cnbc last night, before the US opening. Looking at the chart, I think they already had confirmation but the 2% fall with the S&P 500 closing on its lows would have convinced most of the technicians. Here's the daily. The Elliot wave approach doesn't use terms like 'head and shoulders' but the response is much the same. My guess is that we've had the first wave down, a completed correction and we're now in the third wave down. This should have more momentum but it's still unclear whether in the bigger picture it's just going to prove to be a correction of the move up from early March or if new lows are in prospect. Personally, I think we'll make comfortably higher lows relative to March and rally again from there.
Regarding my positions, there's only a couple of days until I go on holidays so the plan is to look to unwind but not put on anything new. Most things have gone my way today, Tls is up and the three resource shorts are down with Qbe the only negative, down 21 or 1.1%, which is the same as the Xjo.
The only thing I've done is to buy back a third of the Mgx short at 80.5 (v 85.5).

12.09 Just tempted by another short position, this time in Qantas. The stock made a new low this morning as it slips away from support around 190. Short at 185.

2.12 This is a bit quiet again as I'm winding down before the trip. Just bought a couple of Osh at 517 (v 529). The market is only 36 points lower which is outperforming overnight leads and the other markets in our time zone. We had some extraordinarily strong consumer sentiment readings this morning so that might be helping.

2.58 The rally has gained some momentum with Mgx now up on the day. I've cut the Gbg short at 71 (v 72). I've also cut the rest of the Oil Search at 520.

3.12 Now out of my long in Qbe at 1956 (v 1962) for a small loss as it has battled all day to be even with last night's closing price. Not the sort of performance I was hoping for after yesterday's strength and with the intraday rally starting to stall I'd rather be out. Sold a few Tls at 336 (v 334) to cover costs. Still not out of Mgx; I didn't react quickly enough when it turned and now I'm rather forlornly hoping for a couple of cents pullback.

3.18 Damn. Just realised Qbe could be about to surge and quickly bought back at 1962.Here's the 60 minute chart.

3.38 Stuffed up in Mgx, just paid 90 after hesitating for 30 minutes. Short was at 85.5.

4.13 The rally kept chugging on until the close and the market closed up 1 point. I've got very few positions and they're all small...long Qbe and Tls and short Qan.