Well I won’t say the triangle didn’t have me a bit worried yesterday, with the solid low at triangle support on Friday and the near miss of triangle resistance on SPX. The break down through triangle support this morning however pretty much kills off the bull triangle scenario and this should be the start of the move down that Stan and I have been expecting. SPX 15min chart:
The next support levels to watch are main rising wedge support in the 2130-2 area, the daily lower band at 2129, and possible double top support at 2119. SPX daily chart:
ES triangle support is now also broken. ES Dec 60min chart:
Ideally I’d like to see a trend down day today to break the SPX rising wedge support at 2130. SPX and SPX looking very short term oversold though and we may not see that. It’s likely to break soon though. We’ll see.
