SPY has Broken Bottom Trendline of the Rising Wedge.
QQQ has also fallen from it's own ascending/rising and narrowing wedge. Posted below.
Support is usually found within the rising wedge pattern, but it is possible to go to the beginning of the bottom trendline as well, or lower if extremely bearish sentiment persists.
As each level of support is breeched, it becomes resistance.
DIA is trading in a bearish crab pattern and looking for support.
No recommendation and hopefully support will kick in soon. I hear the talking heads say that this pull back is due to another new flu variant and there will be many. Influenza has been around for centuries (even though I have heard the media say it is now eradicated?), and has hundreds of strains. They do an educated guess on which strain of influenza will hit each year and choose that particular vaccine for the yearly flu shot. Viruses like to live just like we do and are known to mutate to survive. This is nothing new! But I think we all know that many securities were overvalued and the party would eventually have a pull back. It seems the media always tries to blame a pull back on something, and it is only normal to have corrections in the market.
The rising (ascending) wedge pattern is a bearish chart pattern that signals an imminent breakout to the downside. It's the opposite of the falling (descending) wedge pattern (bullish). The rising wedge consists of two converging trend lines that connect the most recent higher lows and higher highs. In a rising wedge, the lows are catching up with the highs at a higher pace, which means that the lower (supporting) trend line is steeper. Given that the lows are progressing faster than the highs, the wedge is squeezing towards the point where the two trend lines intersect. Despite a push from the downside, the buyers are finding it difficult to break out to the upside, which triggers a move in the opposite direction.
A Rising or Ascending Narrowing Wedge consists of 2 trendlines that slope up, unlike a symmetrical triangle which has both trendlines sloping in opposite directions. They both push price in to an apex that will eventually break. Both can be long term patterns. There is also an ascending and broadening wedge pattern which is also known as megaphone. FDX is in a megaphone pattern right now.
Support is usually found within the rising wedge pattern, but it is possible to go to the beginning of the bottom trendline as well, or lower if extremely bearish sentiment persists.
As each level of support is breeched, it becomes resistance.
DIA is trading in a bearish crab pattern and looking for support.
No recommendation and hopefully support will kick in soon. I hear the talking heads say that this pull back is due to another new flu variant and there will be many. Influenza has been around for centuries (even though I have heard the media say it is now eradicated?), and has hundreds of strains. They do an educated guess on which strain of influenza will hit each year and choose that particular vaccine for the yearly flu shot. Viruses like to live just like we do and are known to mutate to survive. This is nothing new! But I think we all know that many securities were overvalued and the party would eventually have a pull back. It seems the media always tries to blame a pull back on something, and it is only normal to have corrections in the market.
The rising (ascending) wedge pattern is a bearish chart pattern that signals an imminent breakout to the downside. It's the opposite of the falling (descending) wedge pattern (bullish). The rising wedge consists of two converging trend lines that connect the most recent higher lows and higher highs. In a rising wedge, the lows are catching up with the highs at a higher pace, which means that the lower (supporting) trend line is steeper. Given that the lows are progressing faster than the highs, the wedge is squeezing towards the point where the two trend lines intersect. Despite a push from the downside, the buyers are finding it difficult to break out to the upside, which triggers a move in the opposite direction.
A Rising or Ascending Narrowing Wedge consists of 2 trendlines that slope up, unlike a symmetrical triangle which has both trendlines sloping in opposite directions. They both push price in to an apex that will eventually break. Both can be long term patterns. There is also an ascending and broadening wedge pattern which is also known as megaphone. FDX is in a megaphone pattern right now.
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