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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!