Tuesday, June 15, 2010

ES backtest of the rising wedge

Everyone is so bullish they can't see this rising wedge.

Back test of the broken rising wedge, AND a  double top, however, the 800 lb gorilla in the room says upward pressure on the SPX as long as the Euro is rising.   Sure they downgraded Greek debt the other day, BUT that is also classic Cramer manipulation of old school days.....down grade the stock near the bottom, shake out the shakables.


  1. Thanks Tom, the wedge was broken, an amazing set of green candles on the EUR/USD hourly....maybe its not a gorilla but an elephant in the FX room.

  2. Pretty charts as always.

    Just testing our comments to your blog.

    Did this work?

    Scotty and Don

  3. looking at that euro chart there are three complete waves down. it's begging for a fifth. if this move up is four or part of four...well, then I bet the move in ES/spx is, too. which might relieve the tortured EW counts out there these days, eh?

  4. to further stir the pot, that fourth euro wave may be part of a wave 3? maybe? even worse for stocks.

    and the way we crawled up the underside of that wedge all freaking day...that was one of the more bizarre things I've seen recently. looked far from healthy.

    guess we'll see.


Insightful and Useful Comment!