Charts I’m Watching: Aug 22, 2012


The futures show how perfectly balanced things are at this level — with a step in either direction being very significant.

We tagged the IH&S target created back on June 19 yesterday, creating a double top after having broken the fan line off the Oct 2007 top.

We appear very likely to hit yesterday’s target of 1408 – 1410 on SPX after the open.  If it can hold those levels, we could see another leg up in the rising wedge.  If it breaks, look out below.

More in a few.

UPDATE:  9:35 AM

SPX had no trouble reaching our target range on the open.  Note that we have three chart features in play at the moment:  the rising wedge bound, a back test of the fan line (purple, dashed) and a little trend line drawn under the prices on the 60-min chart.



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