Double Top?

In the wee hours of June 11, I pondered the possibility that the e-minis were forming an Inverse Head & Shoulder pattern [see:  Big Picture.]  I posted this chart, which showed that the target of such a pattern would be 76 points away from the presumed neckline — the exact same distance as the just … continue reading →

Wedgie Alert

In a sign of just how over-extended this upside push has been, consider this rising wedge on the 60-min chart.  It’s not proof of an impending swoon, but put into context of our other charts, it sure has that feel. As clean and simple as was the channel down from 1422 to 1266, the channel … continue reading →

Now What?

Thanks for your patience today.  I’m taking advantage of the OPEX dulldrums (sic) to take a step back and evaluate the big picture. Yesterday, in another low-volume meltup, SPX exceeded my 1411 target by almost 7 points.  Recall that 1411 was supposed to be the level to which the market would run if it slightly … continue reading →

Moment of Truth

SPX has been tracing out a channel over the past several months, but its RSI has clearly formed a rising wedge.  The divergence begs the question: “which will prevail?” Regular readers know I’m a fool for chart patterns in general and RSI chart patterns in particular.   But, that’s a solid channel that’s withstood some pretty … continue reading →