Rising Wedge Scenario Begins to Unfold for S&P 500
It’s exactly the kind of look that I would expect if the rising wedge formation was going to inflict some pain on the impervious bulls.
The spike high out of the wedge is a classic pattern, which usually is followed by a vicious, downside reversal that confirms the prior upside is complete.
Today’s action certainly seems to be carving out exactly such a scenario.
A break that sustains beneath 1482 will be our first significant indication that the up move from the “Fiscal Cliff Low” at 1382.50 on Dec 28 is finished, and that a correction has started.