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The bottom of a short-term rising wedge is being tested this morning….It has not broken down though, just short of 10 a.m. Eastern.
Should it break, support off of the 2009 lows comes into play around the 1,290 level. IF short-term support gives way, I suspect SH will pick up a fast 3%!
Carl,
If the bottom of the wedge does break, which it hasn’t at this time, it should usher in much lower prices. Would a break below this line in the sand mean the 500 will go back to the 2009 lows? Just based upon a line break, I would give it just a 25% chance… Great question Carl!
Chris
Hi Chris, your quotes “if support at 1290 breaks…we will discuss that later”. If this support breaks, it means that the giant bearish wedge from 2009 will be broken. If I am not wrong, the rule for a wedge pattern is that once pattern is broken, the price retraces all the way back to the beginning of the pattern, at a minimum. And that is the low of March 2009.
Thanks as always for sharing with other traders.
Carl V
Great insight, with how fast commodities are falling, would not be surprised to see S&P break line 1