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Monday, December 22, 2008

An Ascending Wedge in the S&P?

This comes from a SpikeTrader Alex DJ. He is looking for similarities between markets and makes a market call in SPX in the basis of a recent similar pattern in FDX - AE



As a Spike member I’d like to share an important and potentially money-saving, observation.


We can clearly see an Ascending Wedge pattern, very Bearish, taking shape on the S&P500 chart. We’ve seen this pattern quite often during the 2000-2003 bear market.



Please, check out both attached charts.



So even if there’s a continuation of the Santa rally, we’d better be quick to exit any long trades on price breaking through the lower ascending trendline of the Ascending Wedge.

Merry Christmas to all my fellow SpikeTraders!!


Alex DJ

3 comments:

  1. Kerry and Alex -
    You all are doing a great job with your new blog -
    Thanks for all of the great information-
    Happy Holidays -
    Mark Marino

    ReplyDelete
  2. It is great that you took the effort to post what you discovered. (It might prove to be very helpful, e.g. equity protecting.) Not everyone would do that. Thank you! – You forgot, though, to post your account number for us to send you our protected profits or avoided additional losses, as the case may be!
    Regards,
    Rodryk

    ReplyDelete
  3. Alex DJ,
    Thanks, I too watch carefully for this pattern after getting burned by it in the past. Volatility has also shrunk significantly, making things even more potentially explosive.

    ReplyDelete