Not So Good Stock Market SPY Wedge Pattern

By: Marty_Chenard

Yes, the short term Inflowing Liquidity has been positive and up trending. The affect of the Liquidity can be seen on this weekly chart of the SPY. As expected, the SPY has been moving higher, but is getting very close to its resistance area.

What doesn't look so great, is the longer term, rising wedge pattern that you can see on the SPY.

Note how the upper resistance and lower support lines are converging on each other. That converging continues to set a narrower up and down range. Typically, as the range narrows between the two lines, the volatility increases until there is a breakout of the pattern. Historically, a rising wedge pattern is regarded as a bearish pattern.

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By Marty Chenard
http://www.stocktiming.com/

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Marty Chenard is the Author and Teacher of two Seminar Courses on "Advanced Technical Analysis Investing", Mr. Chenard has been investing for over 30 years. In 2001 when the NASDAQ dropped 24.5%, his personal investment performance for the year was a gain of 57.428%. He is an Advanced Stock Market Technical Analyst that has developed his own proprietary analytical tools.  As a result, he was out of the market two weeks before the 1987 Crash in the most recent Bear Market he faxed his Members in March 2000 telling them all to SELL.  He is an advanced technical analyst and not an investment advisor, nor a securities broker.

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