August 23, 2010

Falling Wedge of S&P 500

CHART - 2
  • Support line of the wedge is broken. Index is moving away from 50 DMA. But Falling wedges are considered to be bullish pattern, Since this pattern has given a break down in favour of bears, Bulls would hoping for a busted pattern.
CHART - 1
  • S&P 500 is trading in a falling wedge pattern.
  • Today a rally is going on towards the upper trend line of the pattern were it may find resistance. The resistance levels is about 1087-1089.

3 comments:

  1. I think 1055 is crucial for bulls/bears. But given stoch is in OS, there might be a small popup.

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  2. @golfdude
    Yes the popup if happens may not last longer. Sell on rallies will continue for some time

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  3. @everyone
    1055 as golf said is a good support area.

    Below that 1050 may support the bulls for some time. Below 1050 correction may pick up speed

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