We love trends and the SPX continues to trend higher. However, we must also be cognizant that this bullish action is happening inside a rising wedge pattern which if confirmed is quiet bearish and could lead to a substantial pull back. It's too early to predict anything like that, but we need to be aware of patterns like this forming so we're not surprised with the market tanks
(if it does). When I looked at some of the longer term SPX time frames I saw that these rising wedges often fail on the SPX, so this could just be some wildly bullish action that just keeps on moving up. I'm ready for either scenario.
The SPX hit 1440 today (intraday) which has been a target of many for the last couple of months and by looking at the daily chart it appears everyone sold on mass once it hit 1440.
Another topping tail on the daily chart, we'll see tomorrow if it means anything. Note that last Wednesday's topping tail failed and the bulls blasted right over it.
SPX Daily Chart:
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