One day below the rising wedge
pattern shouldn't be seen as a bearish
signal, although it is a concern. If $SPX
should close two days below the rising wedge
pattern, then that would be a clear red flag signal, but even so, $SPX
could bounce and resume its uptrend without much trouble. In the meantime, it wouldn't be out of the question for $SPX
to pull back to the 20MA, now at 1849, and then bounce. This is pretty common occurrence so, at this stage, I would expect $SPX
to tag the 20MA and bounce. Should $SPX
drop to the 20MA and not bounce, then that's another story.
Longs need to be hypervigilant for the next several days and, IMHO, they should pay close attention to market leaders, the QQQ/$NDX and the $COMPQ.