SPX Rising Wedge Target Achieved. Potential Near Term Support

in trading •  6 years ago 

The rising wedge in the S&P 500 that I wrote about here has already been fully retraced. By looking left, it's also apparent that this is a level that price has bumped around since the start of the year. Nobody can know yet whether price will bounce here but it would seem like a natural place to do so and any bounce should be respected.

I remain bearish further out but I don't think this is a time to be adding to shorts until price gives us a little more clarity as to it's near term direction.

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Nice set up.

I'm looking more to mange risk on the short side than trade long. Can't find too many compelling long trades right now. Also not sure how far any bounce may take us although bear market rallies have a tendency to rip!

Agree, we need confirmation that price once to move higher before placing long trades.