There's no reason this market can't simply break above that rising wedge and continue higher... if you notice, there's also a rising wedge below that wedge, the August and September highs and the June and November lows, not quite the same size in price and time, and the market moved above that one also... these kinds of rising wedges have typically been bearish, but this market ignores all previous rules...
Also, I like to call it the 65% Rule... this means that the market typically breaks out of the wedge about 65% of the way through a wedge, it very rarely ever goes all the way to the wedge point, that is simply not the case... and for this wedge, we can see that the 65% Rule has already been extended, I would suspect this is going to be bullish and break higher again...
It would only make logical sense to see this market have a 5% pull back, a pause, and especially into March when the March SP futures contract begins to roll over into June, there is so typically a pause in the rally in that time frame... so, we could see it again, but that very surely does not mean a market top of any kind, just a good and healthy resetting before the next leg higher...
GZ |
