sp500 60 minute chart trades in broadening wedge and shows Shooting Star

The sp500 is not making much upward headway, so the issue is does this just turn into another platform for a jump higher or is it a platform for a reversal down? 

Yesterday a candlestick pattern similar to 3 black crows cam in on the hourly chart but it is far from perfect and is a stretch call it a valid 3 black crows.  Still it does show some supply coming into the market.

Today so far we printed a shooting star candle on the 60 minute with a long tail and it has not been confirmed as a sell.  The market is still holding ground and does not appear ready to confirm it yet.

The larger 60 minute pattern is a broadening wedge with a possible bottom side target of 1153.  I am thinking this is a possible target either end of day today or sometime Monday ?  A move from 1181 to 1153 is about 2.4% which is the amount of technical damage I alluded to yesterday that would be ideal for helping to shift momentum more confidently from up to DOWN.

sp50060minute1022

After today I really only see 5 more trading days left for some hint that we really are topped out here.  We need to see these signs during the next 5 trading days in my opinion.  I do not think we break above the top boundary of this wedge.

If the big sellers want to start preparing to ‘sell the news’ of November 2 and 3rd 2010, then one would think that some signs of this would start to show up at the latest by end of next week.

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2 comments on “sp500 60 minute chart trades in broadening wedge and shows Shooting Star
  1. Shrihas says:

    Tom,

    South Korea time is about 11PM now, so we will see some statements only tomorrow from G20.

    Hope to see strong opening on Sunday night. Sorry to be so optimistic but I see S&P at 1075ish……Hopefully this time I will catch full move….

    Keep up the good work…

  2. Tom says:

    No need to apologize, there is always a bull bear and neutral side to everything… the pattern has been a lot of optimism as of late, so it does make sense that even more optimism would come from this weekend meeting.. but the buyers seem to be meeting the sellers at eye level for now…

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