PRE OPEN H&S BREAKS: BEAR CHANNEL SELL OFF 5/17/12

IN the Euro Zone ES developed a head and shoulder pattern that broke lower developing a bear channel sell off that hit BO15.

B1 and 2 were open sellers followed by the first pullback in B3, an opportunity to join the bear TL and selling channel.

B8-9 was a short BOT fade that was a bullish counter trend entry.  Side ways action followed and seller again pushed the Pa to the SB.

A failed channel break out (FCHBO) hit at B34-35 with a HL long at B38 back to the upper TL and a fade of the SB (also a lower high from 15-15 area).  These shorts continued with an EMA established as the resistance and a final end of day channel BO.