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30-minute Rising Wedge Patterns Could Have Larger Implications

Keep in mind that should this 30-minute chart rising wedge pattern play out for a move back down to the 210.83 area as I would expect, that would have much larger implications by undoing the recent breakout to new highs in the $SPX. However, a setup is only just a setup until triggered. Still awaiting a break below the rising wedge, a MACD 9-ema cross below zero line and a bearish cross on 14/34 ema pair on both SPY & QQQ to trigger the sell signals for the broad markets. While my near-term targets remain SPY 210.83 & QQQ 108.82 (unofficial trade at this time & those are the actual support levels, best to set your BTC/closing orders slightly above to help prevent missing a fill, should the market reverse just shy of those levels).

Also keep in mind that should these wedge patterns trigger & play out to those near-term targets, one could opt to set stops at their enter price & let the short position ride as if the $SPX can't quickly recover the recent breakout to new highs, that would signal a failed breakout, aka bull trap, with much larger bearish implication on the stock market.

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Jul 13, 2016 10:16am|Categories: Equity Market Analysis, Unofficial Short Ideas|Tags: , , , |1 Comment

One Comment

  1. rsotc July 13, 2016 11:23 am at 11:23 am

    SPY trading below rising wedge although QQQ is currently still right on the bottom of its comparable wedge pattern. Trend indicators on both remain bullish for now. An alternative (blue) uptrend line which could come into play has been added to this 30-minute chart.

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