SPX broke out of a wedge to the upside and is now forming a small wedge. I don't know enough to pick its direction, any ideas?
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I will be placing a small short position on the S&p 500 for the week as I think this might be a failed break out - 3400 is my target before going to new highs.
Direction out tends to be the same as the direction in. Given the divergences, however, any breakout to the upside may be short-lived unless the divergences are overcome. The widest part of the "Triangle" (vertically) is used to generate the projection target (up or down) from the breakout point.