Another Atomic Wedgie?

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Despite the offensive complacency of the bulls back in mid-February when we hit 52-week highs, the bearish rising wedge held true. Indeed, the market retraced the entire rising wedge pattern, and then some, during the 7% correction earlier this month. After this most recent rally, the market now looks to be nearing resolution of yet another rising wedge.

Before you go shorting like it’s going out of style, though, consider the tendency of alternation in technical analysis, where two identical patterns are less likely to resolve similarly when seen within such close proximity on the chart. Thus, anticipating a breakdown appears to be a lower probability bet here than it was last month. Beyond that, we still have that key 1300 level representing support once again on the S&P 500.

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