Possible rising wedge forming, a continuation pattern in a down trend or reversal in an up.
Today felt "toppy" IMO, long weekend ahead, lets see what Monday brings... If wedge is validated this oughta make some put holders happy, but one more impulse up before more down... unless JPOW printer go brrrrr.
Looking at ~$264 for local low and ~$293 for top.
Added a few potential outcomes based on major support/resistance horizontals.
The low of $156 (although hard to imagine it going that low) is the 2007 top.
Will be interesting to see if it fits within the wedge boundaries you have illustrated or within the more localised (Steeper) wedge from the last couple days.
crypto_bugga
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@bsimo0001 yea man, I kinda thought it fell out of the steeper one at the end of trading yesterday, but maybe not.
hindraftv
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where do you think it will go (Will it go to 290 and trace back down to 250 n possibly 230 or straight pass that) and why? Take "unlimited QE into play
crypto_bugga
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@hindraftv, If the wedge plays out, we would head to ~$264, then up to ~$290, those look like key levels. I think it would be around a 17% downward move from where it breaks out, but it could bounce and rally to new highs from there. You would for sure have bounces on supports on the way down if it did continue to new lows.
The Fed is going to do their best to keep it heading up, but if this rally fails it is possible the state of the economy won't be ignored by investors, and you would see increased selling. It would appear we are entering a phase of contraction with jobless claims at ATH. From what I have found there is an inverse correlation between equities and unemployment. Q1 earnings will also be coming out over the next few weeks, and those will be a good indication of the economic impact.