Since last August, bullish falling wedges have led to rallies in the Australian$/U.S.$ ratio and in turn, the 500 index has moved higher along with the ratio. Over the past couple of months the AUD/USD ratio has formed a bullish falling wedge and in the last 4 days the ratio has broken above the wedge and tested it as support yesterday and today at (1).

A “bounce higher” out of the bullish fallign wedge in this key currency ratio, could well push the 500 index higher again!

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past