CLICK ON CHART TO ENLARGE
Bearish rising wedge patterns two-thirds of the time lead to falling prices. The NYSE composite has created a bearish rising wedge that is about to come to an end.
At the same time this pattern is coming to completion, the Advance/Decline line reflects that a divergence is taking place, meaning that the A/D line peaked in May and has been creating a series of lower highs.
With the A/D line diverging and reflecting weakness, it increases the odds that the the bearish rising wedge will have an impact on this broad index!