Nasdaq (update)

The following market recap is from my newsletter for the week ending 4/13: "This past week saw prices come off further after establishing a bearish engulfing pattern on 4/5.  The market closed below its 20 DMA on Tuesday and it has served as upside resistance the past 2 days.  We haven't closed below the 20 DMA for more than one day since December, so this is something to watch.  We did find support at the MS1 @ 5351.42.  That level along with the 50 DMA are the next downside obstacles to overcome."  This week has continued to see resistance @ the 10 and 20 DMA's and could be forming a head and shoulders top pattern.  The head of the pattern was formed with a bearish engulfing pattern that lead to a short entry @ 5408.75 with stops @ 5481.50.  The pattern itself is forming in the top of my MM Fade Zone, which is calling for a reversal.  If prices break through the pattern neckline tomorrow, then we would need a close below 5354.25 for confirmation.  Stops would be placed @ 5431.00.  Target 1 would be @ 5245.00 and target 2 would be @ 5208.50.  In addition, another short entry could be placed at my 361/461 Fib combo @ 5344.50 with stops @ 5481.50.  The downside target on this entry would tentatively be @ 5065.50.