S&P Continues to Rise in Wedge/Channel
The S&P continues to churn higher within a pattern that looks wedge-ish, though not dramatically so. The July 24 sell-off could be viewed as an aberration in an otherwise intact rising wedge, or a brief visit to the bottom of a rising channel. One view (wedge) is bearish. The other (channel) is bullish. The 50 day moving average has also turned up. To my mind, the big test will come around 1400 as that’s where a trendline running from the 2007 high through the highs of earlier this spring currently resides.