Wedge on a Ledge

By -

Well, Fed Day is behind us, and that's a good thing. I hate all the noise it causes. Its biggest effect today seems to have been to push the $VIX to ever-lower levels.

I've been working on my latest book (in case you haven't heard, I've written a bunch of 'em, including this one I mention from time to time about ProphetCharts), and last night I finished my chapter on the ascending wedge pattern. I was struck by the SPY graph and the fact that it sports two gorgeous ascending wedges, one of which was gloriously pierced last Spring (ahhh, those were the days, weren't they?) Of course, it was a POMO-free market, so it actually had a chance to go down before Bernanke could shove his index finger into that dyke.

Anyway, the similarities of these moves is pretty obvious. The problem is that the wedge hasn't been broken yet. If and when it ever does, I will definitely make a lot of noise about it here.