Interesting setups that you should watch next week

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When the stock market is down, should we buy or sell? Thats always the million dollar question for many investors. Your instinct probably says yes, but looking at this daily chart formation, it maybe wise to buy rather than sell, because of the December effect. While buying the dips can be scary for investors, it’s been a great strategy in recent years, especially in this particular season of the year. The rising accumulation line also indicates that smart money is doing exaclty that. Above chart shows what it looks like to be a head and shoulders bottom pattern  or in other words an inverted head and shoulders, which is the first sign that a bearish trend is about to end. The inverted head and shoulders formation represents a decline to a new low and a rally to immediate resistance, followed by a second decline to a lower level, then a third, more modest decline and rally through resistance. However, take note that the index must break the neckline of this pattern located at 2816 in order for it to be a valid inverted head and shoulders. Many market participants and friends are reluctant to believe in a Santa Claus rally this year, but im confident that we will see it happens once again.