Standard Pacific (SPF)

The trend line from May 2011 to earlier this year was broken. It is probably a pretty good example of a head and shoulders top. This was followed by a “Test”. The chart is bearish from every technical perspective that he can talk about.

Chart shows a classic topping formation. The main thing to look for is a break in the neckline. He would say that we are about to enter into a bear market pattern for this company.