There is a bearish rising wedge in the SPX 60min chart. If the SPX continues at its current velocity, the wedge should break lower tomorrow (Wednesday). The velocity of SPX was rather consistent the last few days intraday, as I accurately called the upward breakouts of the triangles intraday today - they came 7 minutes before the timeframe I called. Of course, this is no guarantee, just a suggestion to the recent reliability of the velocity. Yesterday they were within 1 hour accuracy.
It's possible that the SPX puts in a doji candle on Wednesday and doesn't break on Thursday, but that would require a slowed velocity or a shift to consolodation vs. upward movement. And of course, the SPX could break out higher, especially given it's recent strength.
However, purely from a technical perspective, the charts suggest that it breaks lower on Wednesday. Now, it is common for a backtest of the broken wedge to occur, so after the break the SPX could move up.
Also, the DAILY SPX also has a rising bear wedge with the same velocity.
* ChristopherStockGuy is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. For details, see the post from SATURDAY, AUGUST 15, 2009 titled "Disclaimer".
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