Thu 10-30-14: Rising Wedge Break Complete

FX:SPX500   S&P 500 Index
The rising wedge I've been watching for several days appears to have a nice clean break to the downside with an hourly close below the rising bottom trend. This break sets up two potential targets to watch for on the downside over the next few days.

target 1 - 1942/1947: this area sits just below a .236 retrace and would line up with the potential for a inverse H&S shoulders patterns. For this pattern to play out 1942 (depending on timing) must hold. Failure there and the 2nd target will likely come into play. I believe many will be watching this area and it should get some support. However, a move below and target 2 could come quite quickly.

target 2 - 1926: this area would represent the primary target of the rising wedge break. It lines up with the initial pivot that created the base of the wedge . Also this area represents the .382 retrace of the recent rally.

Red lines are multi year trend lines