25 March 2013

S&P500 : Ending Diagonal

  • Wary of trying to call a top in S&P having been burned over and over again this past year. So, just highlighting (no trade!) the contracting ending diagonal that is now apparent in the weekly chart.
  • Price is trading above the upper diagonal line. A re-entry back below 1515 would form what Bulkowski calls a throw-over (basically a false break) and would be my starting point for getting bearish.
  • [See also rising wedge].

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