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Three years ago I did a post titled “Look Alikes, Dominoes and Slipper Slides” which highlighted that the key stock markets around the world were all creating bearish rising wedge patterns. (see post here) Check out how much today’s patterns look similar to the patterns of three years ago.
Results 5 months later….Each of these markets were lower, S&P 500 lost over 15% from high to low.
The 4-pack above reflects that popular stock markets around the world have created bearish rising wedge patterns. This pattern, as with all patterns, aren’t correct 100% of the time. Rising wedges are correct two-thirds of the time and wrong one third. Markets have broken above rising wedge resistance before and will do it again.
Joe Friday….However, the world looks vulnerable to these rising wedge patterns.