BE SURE TO CHECK OUT THE PUBLIC CHARTLIST OF THE WEEK
– Each week, Chip is singling out one of the Public ChartLists for recognition as the "Public ChartList of the Week."  Two weeks ago it was
Gary Berkley's "Simple Systems" list
.  This week it is
Dirk Hettrich's "Broad Look to Various Markets."
 A new list is chosen each Tuesday and highlighted on our main Public ChartList page.  If you haven't reviewed the Public ChartLists recently, you really should visit and see some of the great charts our dedicated authors have created.

CALLING ALL PINTEREST USERS!
-
Pinterest
is one of the newest social websites out there.  It's great for organizing, reviewing, and rating things that have pictures associated with them.  We aren't sure – this stuff is new to us too – but it seems like Pinterest might be a great place to
share charts and commentary
 and we need people to try it out and let us know.  So we're holding a contest!  To enter, just create a Pinterest board with some great organized collections of StockCharts charts.  By the way, you can now use the "Share" link under any SharpChart to quickly post a chart on Pinterest.  Once you've created your board, let us know by
sending us a link to it
.  Next weekend, we'll judge all of the entries and reward the best looking board with three free months of service!

What really worries me about the direction of stocks is the possibility that foreign stock indexes could be tracing out two-year "head and shoulder" tops. That's true of both developed and emerging markets. Chart 1 shows
EAFE iShares
tracing out a textbook "H&S" top. [A head and shoulders top is identified by three peaks with the middle peak (the "head") higher than the two surrounding "shoulders"]. The fact that the two shoulders are about the same height adds to the symmetry of the pattern. The "neckline" is the trendline drawn under the 2010-2011 lows. A decisive violation of that support line is a very bearish sign. It now looks like the EAFE will retest that trendline (or its late 2011 low). That will a very important test, and hopefully will produce an oversold bounce of some type. Chartwatchers know, however, that the overall shape of the potential topping pattern since the start of 2010 calls for a lot more caution. The same is true of
Emerging Market iShares
in Chart 2. If those the late 2011 lows are broken, that would be a very bearish sign for global stocks. Given the tight correlation among global stocks, any breakdowns in foreign stocks would have a negative impact on U.S. stocks as well.

What really worries me about the direction of stocks is the possibility that foreign stock indexes could be tracing out two-year "head and shoulder" tops. That's true of both developed and emerging markets. Chart 1 shows
EAFE iShares
tracing out a textbook "H&S" top. [A head and shoulders top is identified by three peaks with the middle peak (the "head") higher than the two surrounding "shoulders"]. The fact that the two shoulders are about the same height adds to the symmetry of the pattern. The "neckline" is the trendline drawn under the 2010-2011 lows. A decisive violation of that support line is a very bearish sign. It now looks like the EAFE will retest that trendline (or its late 2011 low). That will a very important test, and hopefully will produce an oversold bounce of some type. Chartwatchers know, however, that the overall shape of the potential topping pattern since the start of 2010 calls for a lot more caution. The same is true of
Emerging Market iShares
in Chart 2. If those the late 2011 lows are broken, that would be a very bearish sign for global stocks. Given the tight correlation among global stocks, any breakdowns in foreign stocks would have a negative impact on U.S. stocks as well.