Island Top on SPX

Island Top on SPX

Well obviously SPX didn’t do the higher high that I would have preferred, and this morning’s gap down broke down through rising wedge support and also gapped back through the open breakaway gap up from 2839.25. This currently leaves a decent quality island top on SPX and an open breakaway gap down from 2853.53 that I wouldn’t expect to see filled until the current decline is finished.

No clear reversal pattern yet, though there is a poor to medium-quality H&S option that I have marked on the chart below. The minimum targets I would generally be looking for on a break of a rising wedge like this are the 38.2% or 50% retracement targets in the 2797 or 2773 areas respectively. SPX 60min chart:

Are there any important support levels that didn’t break this morning? Yes, rising wedge support on TF has been tested but not yet broken, and there is a possible 60min buy signal brewing there that I’m watching with interest. I’m not expecting a strong reversal to start here but this does give the bulls a potential opening. We’ll see. TF Mar 60min chart:

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shjackcharts
I Chart Therefore I Am

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