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

Trading Regional Airlines

A SpikeTrade member writes:

If you look at the daily chart of the Amex Airline Index ($XAL.X in TradeStation), you will notice two Dojis and a Shooting Star in the last three trading days. Also prices are above both the 200-day and 50-day MAs and there are divergences with the Stoch, CCI and RSI on daily charts indicating a possible reversal.

Two components of $XAL.X: ALGT and ALK look as good short candidates.

Of course RYAAY, Bob B’s pick of last week, is still also a candidate even thought it is not part of the index.

Good trading,

Jean G