I don't know if I like more what you've posted or the fact that you've seen clearly the "No trade" situation while I got several stops.
Does this analysis imply you expect a potential test on 2626 line and later a break down of the wedge?
RHTrading
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@blondengineer, Appreciate your kind words. It's a busier chart than I usually like to post, but I think it's all relevant. Trying to find a rhythm to the market, when you can't find any rhythm a "No trade" situation makes sense.
Quite frankly I don't like being bearish, it never feels good to me. There's a big difference between taking a bearish trade and simply exiting long positions. That being said, I look very poorly upon the last couple weeks of price action. Nothing about it looks healthy or constructive to me. The strength in HYG gives me pause about taking a bearish position (debt leads equities). That being said, I do think that the next couple of weeks is going to be extremely choppy with unsatisfactory results on both sides. Earnings coming up are going to be the same - some companies are going to miss and some are going to beat.
Sentiment is also extremely bearish which tells me to look bullish. Technicals are extremely bearish which tells me to look bearish. Economic data is weakening which tells me to remain neutral.
To answer your question finally, yes, I think we're wedging up with an obvious target being the Gravity Point which I've relied so heavily on during all of 2018. I will likely look for a divergence in my momentum indicators, volume to dry up, some big news event (likely the shutdown), or a reversal pattern at resistance before I initiate a bearish trade.
The Gravity Point at $2626 has stayed the same from many months ago. When we broke below it, you can see the sharp reaction. Right now we're kind of in no-man's-land. The thin black horizontal lines - "Resistance" "Supply" "Support" - are incredibly thin. If I could omit any part of the chart it would be those lines.
The fact that almost everybody is looking for more downside is my biggest concern.
Here's my last post and might provide some additional context for the current outlook:
Does this analysis imply you expect a potential test on 2626 line and later a break down of the wedge?