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.