SPX Hourly chart

http://bigcharts.mar...&mocktick=1.png

http://bigcharts.marketwatch.com/charts/big.chart?symb=spx&compidx=aaaaa:0&ma=0&maval=9&uf=0&lf=65536&lf2=2&lf3=0&type=4&size=3&state=8&sid=3377&style=320&time=18&freq=8&comp=NO_SYMBOL_CHOSEN&nosettings=1&rand=9025&mocktick=1.png

on the chart you posted... i see price being supported at $900... with momentum and price turning up... and if you scale out more than a week, it's all within the context of a clear uptrend... do you think $950 was a top? i think you'd expect some resistance at 950... as there was at 900... i dunno... i don't think 950 was the top.

Here's that uptrend TA mentions. (1 hourly chart)

U.F.O.

doesn't it make a lovely bearish rising wedge on that 60 minute chart?

doesn't it make a lovely bearish rising wedge on that 60 minute chart? not really, just some sort of uptrend.

896 is the November 28 high. It bounced off the level twice today. If it breaks through that level, it would be the third failed breakout (fourth if you count the original spike).

it is a rising wedge, no doubt... which classically, will resolve in the direction of the trend... but i'd expect to see some negative divergences, i.e. weakness in the trend... before that resolution occurs... i don't see that yet... i just see price trending up, albeit choppy... it is the best sustained strength the market's had in a good few months... any shorts we've taken, have in hindsight, been clearly counter trend to this rally... who knows though... maybe it turns down tomorrow...

Rising wedges are classically bearish.
You even state they are a continuation pattern...then the market will continue in the down trend as that is what it was prior to entering the rising wedge.

http://stockcharts.c...g_wedge_reversa

it is a rising wedge, no doubt... which classically, will resolve in the direction of the trend... but i'd expect to see some negative divergences, i.e. weakness in the trend... before that resolution occurs... i don't see that yet... i just see price trending up, albeit choppy... it is the best sustained strength the market's had in a good few months... any shorts we've taken, have in hindsight, been clearly counter trend to this rally... who knows though... maybe it turns down tomorrow...

As I have shown before the major market index tried 3 times to get through 1000, this in not a bullish statement. The long cci has started to turn down again.
http://stockcharts.com/c-sc/sc?s=$XMI&p=D&yr=0&mn=6&dy=0&i=p46951697253&r=3017.png

Edited by Russ, 09 January 2009 - 12:11 AM.

The major market index is what the blue chips are doing, the strongest part of the economy and the above chart shows those stocks are stalling out. The Major Market Index is designed to measure the performance of the blue-chip sector of the market, based on 20 well-known, highly capitalized stocks representing a broad range of industries. It is calculated continually by summing the component prices and reducing this total by the current Index divisor. The Index divisor is adjusted periodically (due to stock replacements and corporate actions such as stock splits, spinoffs, mergers, etc.) to ensure Index continuity. Index Components Components list as of 07/23/01 The Major Market Index is composed of shares of the following issues: American Express Co. (AXP) General Motors Corp. (GM) AT&T Corporation (T) International Business Machines Corp. (IBM) Chevron Corp. (CHV) International Paper Co. (IP) The Coca-Cola Company (KO) Johnson & Johnson (JNJ) The Disney (Walt) Co. (this) McDonald’s Corporation (MCD) Dow Chemical Co. (DOW) Merck & Company, Inc. (MRK) Du Pont (E.I.) de Nemours & Co. (DD) 3M (MMM) Eastman Kodak Co. (EK) Philip Morris Companies, Inc. (MO) Exxon Corp. (XON) The Procter & Gamble Company (PG) General Electric Co. (GE) Sears, Roebuck and Co. (S)