Triangles are very tricky to trade as I’ve mentioned many times, and yesterday’s break up was an impressive false break.The close effectively on the daily middle band and 60min MA was very ambiguous though, and the move down overnight is suggesting very strongly that this triangle is going to break down, which is the natural direction as these triangles lean 64% bearish, opening up the obvious target area below at 2082-5 that I have been looking at for most of the week. SPX 15min chart:
SPX daily chart:
The triangle looks cooked and ready to serve now so I’m looking for an AM high of whatever size and then a hard fail to test then break triangle support at 2099/00. Hopefully we can get this moving today as forming this triangle has been a bore, and I for one am more than ready to move on to the next setup.