Monday, January 26, 2009

Chop chop...rising wedge...

Lots of chop today...though we did form a rising wedge. The wedge can collapse now or it could make a run for the upper trendline (as high as 86), before retreating backdown and finishing wave 5 of 1 of 5 :-P
Also the dotted line represents the neckline from an H&S pattern that formed today. Lots of job cuts today...not looking good for the economy.

We are also in a larger descending wedge. So an obvious forecast would be for the small rising wedge to break down and hit a low in the 78 area and then bounce out of the descending wedge up to the 90 area.