SPX continuing to respect trendlines associated with a rising bearish wedge pattern. We could see another push up and over the upper trend line to 4K however these lines have been respected since the COVID crash. Furthermore momentum indicators continue to create divergence on the larger time frames. This suggests a possible correction sometime before April 5 unless this pattern is somehow invalidated. Invalidation would be continuation for a few weeks beyond early April with momentum/volume indicators on the medium and short term time frames resolving divergence issues.
@JamesFlem they’re guidelines. Zoom out a bit. I zoomed in for a clearer picture of what is happening currently. The upper trendline dates back several years. We broke below recently until stimulus pushes us back into the wedge.
ProfitHarvest
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Great case
johndustinsloan
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@ProfitHarvest thanks. I do wonder how the stimulus will play a role. I wouldn’t be surprised to get another push up and out of the wedge for the last few weeks before correcting. Time will tell!