SPX Breakout Mode Measured Move to 4525 Monthly Bearish Wedge

Objectively, price is still inside a monthly rising wedge pattern. Price is tightly coiling for an explosive move. Inside this bearish rising wedge pattern is a bull trend, so yes it appears bullish but the overall trend is still a bear market.

The goal I believe is to take the money off of the shorts by grinding higher, suck in more buyers thinking this is a new bull market then complete the wedge pattern sending prices down taking out all these buyers.

Today is FOMC and my initial bias is long continuation. Price is on a hunt to get to that 4525. Price just broke out of the recent consolidation pattern with a gap up.

Komentar:

Using the date tool to try to extrapolate the length of the current move higher, I would take a rough guess to the end of June. I believe June will be a bullish year followed by a couple of sideways months. This move up to 4525 could be over before July 4th Holiday.

Komentar:

From the point of the gap up, price has increase over 3.5% in the course of just a couple of trading days and is now in a spike and channel pattern. Will FOMC sell off to the base of the channel for a deeper pullback? OR. Will FOMC continue to push higher into the channel, grinding higher and higher. I am expecting at least 50 points of movement today.

Komentar:

There is literally only two ways today can play out for the FOMC and that is

Bullish: Continue to grind to higher prices bumping up along the upper trendline

Bearish: Sell off to start the Bullish pullback to the base of the spike and channel