In the world of high fashion it's all about hems and necklines. In the world of technical analysis (aside from the occasional hemming and hawing) it's the necklines that really matter. Let's ask Chris Kimble what he thinks about necklines.

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Chris comments: Necklines? It's the topic of the week, along with the adjoining Head and Shoulders. So is it really that big of a deal? Does the pattern happen very often and have much of an impact?

I looked back over the past few years of the S&P 500 and highlighted a few of these patterns and what happens at the neckline.

Have a look at the chart above and then you be the judge as to whether Head and Shoulders are important and whether the neckline really is that big of a deal!

From my perspective, the neckline is very important, and the markets will play with this neckline for a little while longer.