One More Heave Needed! (by Springheel Jack)

By -

I was looking at the excellent chart Joe8888 posted on the SPX rising wedge, and looking at the SPX chart, the rising wedge there is not yet broken, though it is broken already on ES:

100806_SPX_Daily_Rising_Wedge_and_IHS

For a solid technical wedge break we need to close below 1105 SPX IMO, and then the downside opens up considerably.

If we fall to the possible rising channel lower trendline then we could fall to either the 1075 SPX area over a week or so, or the 1085 SPX area over two weeks.

Terry Laundry and Pug (on an alternate scenario) are both suggesting 1055 to 1069 SPX as likely targets, and if we're putting in the RS on a big IHS, as I was suggesting a couple of weeks ago we might do if we bounced off the June high, then shoulders on H&S patterns are supposed to be of roughly equivalent heights, so my targets might well then be too conservative.

Meantime though, everybody push, as we need a good close today for confirmation.

Share this post: