Rising wedges two-thirds of the time result in lower prices

Considering this technical situation…. the current wedge took years to form, is at the top of a 10-year rising channel at the 50% Fib retracement level of the tech crash of 2000-2002.

This wedge is a big one…..keep in mind a Fibonacci 38% retracement of this big puppy  is about 800 points off of current values.  That sure seems like a long way down and it is for sure, yet its all due to how large the wedge is!

Not only is a large rising wedge in place, so is a potential “Head & Shoulders topping” pattern. (see NDX H&S pattern here)

Joe Friday says….Nothing is proven yet on the downside (support has NOT been taken out), but do watch that first step down in the basement...its a long way down!

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