The rising wedge on SPX broke down yesterday, and with that break the possibility of a QE fuelled rally into Xmas has died in my view. We have a very significant downtrend in progress and I'm now considering the possibility that we might be in a new bear market, though none of my usual cyclical topping signals are apparent at the 1474 top.
If we are in a new bear market we will need confirmation of that, and as it happens I have a level and target which should deliver that. First though here is the SPX daily rising wedge that has broken, also showing the close also well below the daily bollinger bands. The overnight action so far isn't encouraging for a bounce today, but I would normally expect the underside of the daily lower bollinger band to be tested on an open below it, and that should be in the 1380-2 SPX area today:
