I certainly wasn't the first to spot this wedge, I've seen a few posts on Twitter on it (see here ~~~ embed:1050063179798142977). twitter metadata:UGV0ZXJMQnJhbmR0fHxodHRwczovL3R3aXR0ZXIuY29tL1BldGVyTEJyYW5kdC9zdGF0dXMvMTA1MDA2MzE3OTc5ODE0Mjk3NykufA== ~~~
Along with many other trend breaks in US markets of which I've noted a few on my blog, this rising wedge break is of major intermediate importance. When wedges break, they are typically followed by very swift price action, as is clearly being seen in SPX now. It will likely have a few swings on the way but the target price is the beginning of the wedge at 2,692, still 5% lower from current prices.
Many traders were looking for short term support over the past couple of days given the Jan highs, 50 DMA and a bit of clustered support on the hourly charts. The fact that price went straight through it attests to the underlying weakness of the market at present. The 50 DMA and the Jan highs will likely act as short term resistance instead now.
Stay Defensive.
https://steemit.com/trading/@technicaltrader/internet-index-fund-fdn-price-analysis
https://steemit.com/trading/@technicaltrader/us-markets-semiconductor-breakdown-a-serious-concern
Just got out of the plane to see the Dow down 800 pats wow.
Yeah solid move. Feels like the day traders were getting beaten up trying to pick lows. Lots of the old leaders getting spanked. Have to consider a test of the Feb low as being possible.