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The latest headlines from Bloomberg proclaims, “Germany May be Ready to Surrender in Fight to Save Greece”. Once again, the attention has shifted to the Europe crisis, just after the anti-climax jobs and stimulus talks in the US. Looking at the weekly charts of the Dow Jones and S&P500, we see that both have violated a major trendline after exhibiting the same H&S pattern. This is bearish. Now, prices are consolidating in a tight range. We might see a test of the previous high if there is any good news. Otherwise, this bear flag might break strongly to the downside. We will have to watch the news closely. You can sign up for our mailing list by clicking here.