The big news in the market today was Warren Buffett’s disclosure of a recent $1.069 billion stake in AAPL (Apple Inc.), which provided an impressive 3.71% gain in that market leading stock. However, despite the Buffett/AAPL rally, SPY closed below both the downtrend line as well as the 207.00 resistance level while QQQ failed to take out the 106.80 R level with any conviction, essentially closing right on it & IWM closed below the 111.80 R level, right on downtrend line resistance which is also the top of a bullish falling wedge pattern.

Shortly after publishing the market update video earlier today, I noticed a new development in the SPY worth noting, a partial rise within an Ascending Broadening Wedge (ABW) pattern. Partial rises within Broadening Top patterns & ABW’s provide an above average R/R for a short entry with minimal downside, if stopped out, and considerable downside, should prices go on to break down below the wedge & continue lower.

SPY daily May 16th

SPY daily May 16th

Today’s price action, including all of the charts above as well as further discussion the partial rise strategy are discussed in the video below. An real-world example of the partial rise trading strategy & well as additional information on that strategy can be viewed in this post from Sept 24, 2014, where a short entry for a partial rise on the SPY was highlighted immediately before the stock market went on to experience the largest correction in years.