SPX made a higher high yesterday but still hasn’t yet made my upside target at wedge resistance. My working assumption is that will be hit today or tomorrow. Important support is at the 50 hour MA at 2103/4. We may see a spike down before the high is made to set up the reversal pattern. If so I’d be looking for decent support in the 2100 area. SPX 60min chart:
On the pattern setup all the indices are looking close to cooked now. SPX broke rising support again yesterday. Screen 15min 3x SPX INDU TRAN:
NYA also broke support and RUT has never established a new support trendline after the break down last week. These all look close to reversal. Screen 15min 3x NDX RUT NYA:
If I’m right about the pattern setup then we should see a touch and reversal at wedge resistance in the 2130 area before any significant retracement gets going. That would need to be in the next couple of days really as this setup is really looking increasingly cooked. I’m going to take a flyer and suggest that we could see early weakness followed by a drive up today. You read it here first 🙂
