Chart Showing Rising Wedge
The S&P reverseddirection and shot up a surprising 24 points. Bulls were in full control and made a bullish breakout from the green trendline drawn from October 2007 highs. Support on this trendline is now at 1158.Bulls need to defend this support. The breakout though could not scale past the upper trendline of the rising channel shown in red. Resistance from this line is at 1162.A break above this would be encouraging to the bulls.
A rising wedge, bearish pattern, spotted from the August lows. Resistance from this pattern is at 1171.56 and support at 1140.40. Daily oscillators are showing negative divergence adding credibility to the pattern.Till the lower trendline is held expect more upside.
Resistance at 1162.76-1171.56. Supports are at 1158-1156- 1140.
Happy Trading !!