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
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