A recent failed head and shoulders technical pattern in the S&P 500 has once again raised the age-old debate about whether technical chart patterns are actually useful to traders.

MarketWatch reported the bearish head and shoulders pattern that the S&P 500 formed from March to May was quickly followed by a breakout to new highs.

“Nowadays, chart patterns offer no direct edge simply because charts and related analysis are easily accessible,” author Michael Harris said.

Not ‘That’ Type Of Bear Trader

Insitnet LLC technical analyst Frank Cappelleri believes traders simply have to look for confirmation beyond a single pattern.

“When watching technical indicators we look across various indexes to make sure that a specific pattern is not isolated,” Cappelleri explained.

“Recent breakouts above April highs in small caps and mid caps confirmed that the S&P 500 is likely to break out as well.”

Bearish technical patterns such as a head and shoulders formation that break down quickly are…

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