What’s up, ya’ll?
I was looking at the DJIA, SPX, COMP, and RUT to assess how each index compares with each other when it comes to the development stages of the “rising wedge”.
First, the DJIA is in a perfect wedge. The apex is still developing.
The SPX is the chart that I look at with most frequency. We are close to touching the lower trend line.
Next up is the COMP. The COMP is technically out of it’s wedge and forming a possible ascending triangle. Pay close attention as the apex becomes fully developed.
Last but definitely not least, I’d like you to turn your attention to the RUT. If anything, the RUT has to be paid attention to the most. Notice how I haven’t been seriously playing the small caps for 2 months straight? This is why. Make note that the RUT IS forming an ascending triangle. The ascending triangle is textbook bullish, however, don’t forget that I mentioned several times that failed patterns can produce large profits if you are on the right side. The range here is definitely tightening. Mark the 50-day as the most important support (notice how the RUT will be the first to test the 50-day vs. the other indices?).
Finally, I will be playing in the Stocktwits Charity Poker Tournament tomorrow. This is a really great thing that Joey (a.k.a Downtowntrader) started up. There is a bounty for knocking me out: a bottle of grey goose, courtesy of Joey himself.
UPDATE: Rising Wedge Possibilities
I LOVE THE PIC!
Nice to have you in Addict!
My eyes are on the Russell too. They’ve been under performing, and they didn’t make new highs with SPY, DIA, and QQQQ recently. I think whatever direction they take will lead the next move.
Joey
Should be fun, thx for setting it up. I am sure there are more divergences and I’m looking for them.
I wonder who’s gonna get the goose!!
Thanks for the heads up on RUT. Now I will start looking at /TF.
ROFL! WOW the PIC looks SHOPPED! Or is it real?
Only the speech bubbles.
Interesting picture. And to think …we thought the “TA” in WeeklyTA stood for technical analysis.
whatcha talkin’ about? Imma good boy. lol
A bearish rising wedge followed by a bullish ascending triangle. I don’t have enough experience, any thoughts about what this means? I’m guessing it’s keep your eyes open and be ready for a big move.
Added some ridiculous paint images of possibilities
The paint images are the potential answers for the charts. Images are great … good move!!!!
Warning – many small caps are either too low priced or illiquid to be safely shorted.
RUT: if it breaks below 575 then double top is confirmed, but I think there’s a little room to the upside. 660 is my target to look for short setups.
GL
I suggest you add the DJT and the BKX to your analysis…not to mention a failed economy. S&P 150.
both suck. yep
Top is in, the dog is back
Hey CA,
Woohoo! Nice lay… I mean, lei… the leis on your neck, obviously… yep, that’s what I meant! That picture is priceless!
Oh, and thanks for the charts too!
cheers!
“no comment”
GOL
Keeping a close eye on GSI for a possible scalp at some point- getting down to previous entry level where I rode it up before
CA– did you buy some of that wonderful stock REST yet :)) Though that fun poker tournament may have
done the trick– hope you have a GREAT week — looking forward to ‘class” tomorrow nite on stocktwits
TIA for watching L
JL,
every break of 20 day EMA has been met with furious buying within 48 hours (past 3 mo)
will be interesting to see if same pattern emerges
http://www.fundmymutualfund.com/2009/10/real-breakdown-or-trap-of-bears-do-we.html
Should I call you Einhorn Jr? (poker)
Sup Mark, long time no see.
This will take a long time to determine IT direction, many days I believe. I suck at poker.