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.
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.