I was looking this morning at the decent looking possible rising wedge resistance trendline established on SPX at the highs this week and watching with great interest as rising channel and now possibly wedge support was tested again this morning. The trendline held on the first test and then broke on the second, so there has now been a significant technical break down, and the door is open for a possible significant retracement on SPX/ES. We shall see what develops.
In the short term there is an open 60min RSI 14 sell signal that fixed yesterday, the 50 hour MA is at 2763/4, tested and the low today, and short term daily close support/resistance is at 2771. If SPX is topping out short term that we may see a high retest to set up the topping pattern for a larger retracement.
SPX 60min chart:
NDX has also broken rising wedge support, yesterday in this case, but there is no open 60min sell signal there. No particular need to form a topping pattern on NDX of course, as NDX didn’t break up with SPX and RUT last week.
NDX 60min chart:
On RUT there is a 60min RSI 14 sell signal fixed and trendline support is not yet broken. That is now in the 1562 area.
RUT 60min chart:
Stan and I are doing a free public webinar at theartofchart.net an hour after the close today on interesting setups on commodities this year looking at gold, silver, coffee, sugar and corn. If you’d like to attend you can register for that on the February Free Webinars page.