Friday afternoon was very dramatic looking for the low, which overran my target low area by 1.09 handles, and spent a leisurely afternoon building a complex IHS before breaking up towards the end. That was actually a lot of fun in a very primal man vs market kind of a way and a great way to wrap up the week. My trading bud Mike Vacchi has written a post about that which you can see here. So what now?
Well I posted the chart below after the close on Friday night showing the falling wedge on SPX and the first step today is to see whether SPX can break over falling wedge resistance in the 2081 area. At the time of writing it seems likely that SPX will gap over that so most likely that breaks up at the open or later this morning. What then?