S&P – Triangle Tells the Tale

By | September 18, 2015

A bearish shooting star (or gravestone doji) formed after yesterday’s volatile session on support at 1990, and that level has been badly broken at this point in today’s session. The uptrend line drawn off the August and September lows is now the next level of support.
If the index can get back above the 1990 level it would help to confirm the August/September consolidation as a rising triangle, and suggest a move back up into the horizontal channel range it had been trading in for most of the year, but if the uptrend line is broken the pattern becomes a declining triangle and projects a retest of the lows.

99918.SPXchart2

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