FTSE 100 - forming head and shoulders?

Although P&F charts do not use time on the y axis, they are quite capable of throwing up patterns that you see in other charts, so here is something to ponder.

Could this be the early formation of a right shouldder in a developing head and shoulders pattern. See how the FTSE found solid support (eventually) at 4,800, an level it found clear support at last summer. That measure from the top (6,100) to 4,800 was 1,300 points. If one were to assume this was the neckline, that would provide a target of 3,500, a level where the index found clear support in March 2009.

It may not play out this way but it is plausible that the index could consolidate in a band between 5,050 and 5,400 before eventually giving way and move over. This would be an alternative to another straight down decline similar to the one just witnessed. The 'unactive' target from that most recent column of 23 O's is 2,500, which just does not seem realistic to me (although i'll stand corrected if something really nasty happens!). If the market consolidates for a while, we will start to see new targets to the downside that (if this scenario were to play out) would bring 4,100 in first (also a previous support level), then 3,500.

We'll see !!