$SPX Daily 03/26/2014: Symmetrical Triangle Formation.

INDEX:SPX   S&P 500 Index
184 1 2
For the first time in as long as I can remember, $SPX             slightly outperforming $NDX and $COMPQ. It isn't much but it's been the other way around for a long time.

$SPX             now nearing the apex of a symmetrical triangle that has formed over the past 12 or so sessions. This is considered a continuation pattern and that means that $SPX             should break up and out of the pattern and resume its journey toward 1884, but it's never that simple.

IWM             confirmed a double top today with a close below 116. The Dow hasn't made a new high since late December, 2013. IBB             bounced off support at 233 but now looks to be setting up for another test and perhaps failure of that level. The retail sector is under heavy pressure right now and oh so many of the big tech favorites like PCLN             , NFLX             , TSLA             and AMZN             , etc., have been under distribution for weeks. Obviously this is taking its toll as $SPX             struggles to regain ground it lost just 3 sessions back. Doesn't look good but at the same time I don't see anything that says what's going on now is more than a pause and consolidation phase. If $SPX             were to give a clear 'sell' signal before it pushes above local             resistance at 1884, well, then that's another story.

Markets have a couple of things going for them tomorrow. $TRIN closed at 1.83 and so that is showing oversold. $NYUD:$NYUPV closed at -2.48 and that too is showing mildly oversold. And then there's end of the month window dressing which should kick in tomorrow and last until next Monday.

So, based on the immediate above, it does appear that the markets should get a bit of a lift tomorrow but until there is a true turn around in the Q's and IBB             then I just have to think any upward move will be somewhat muted.

It's not a question of being paranoid, it's a question of being paranoid enough.


3 years ago
I made the same chart, but i think it crossed the lower limit of the formation that was there before?
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