1. Rises to a peak and subsequently declines.
2. Then rises above the former peak and again declines.
3. And finally, rises again, but not to the second peak, and declines once more.
Head and shoulders portend disaster in world markets and leading indicators. And I'm seeing these patterns everywhere:
Obviously, Spain is about to collapse.
But the MSCI World, a stock market index of over 1600 global stocks, is also showing collapse.
The Swiss Market Index, good indicator of the health of the world financial industry, is showing collapse.
One good thing about economic depressions is that they often depress the price of oil. But this oil index's head and shoulders pattern also portends disaster.