SPX: Text Book Technicals this Week

We've been talking about the rising wedge on the SPX for a few weeks now, and the SPX price action is currently trading the way the the daily chart has been predicting.

Rising wedge, then a massive topping tail at 200MA resistance...This one was almost too easy. We alerted everyone to watch for the wedge to break, and with that break came the exodus.

Notice how today's price action closed on the downward trendline on the daily. This makes the probabilities for a relief bounce on Tuesday fairly high, that's my current bias for Tuesday. If the SPX trading action goes lower on Tuesday I'd look for some support at the 100MA on the daily which is the 1365 area.

Have a great 3 day weekend.

SPX Daily Chart: