In his
blog, Chris Kimble identifies a current long-term rising wedge pattern in the S&P 500, which resembles the rising wedges that build up during the periods 1998-2000 and 2006-2007, before large market shifts to the downside occurred. The current wedge is also nearing long-term resistance at 1550 that has held since 2000.
In conclusion, this is a time when "risk off" is definitively the safer play!
Chris Kimble blogs: "An important "Dual Test of support" is at hand right now for
the 500 index. Long investors best hope it holds, because the support
line off the 2009 low is very important! FYI- Support is Support until
broken! Twice over the past 12 years, the 500 index broke support
lines of these rising wedges at (1) in the chart below and prices fell
off quiet a bit."
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