In a knee-jerk Tweet this morning, I offered that the futures either double-topped overnight or were tracing out a flat top rising wedge. When I realized that I was looking at a longer time frame than I thought, I quickly deleted it.
But there may be a shred of truth here.
1214.50, Friday's high, was retested yesterday and may represent the flat top.
This morning's low, 1189.75, did not get below Monday's 1181.50 low. Until it does, it creates the rising wedge shape.
These have a high probability of ejecting topside. With today's Fed meeting wrapping up with a statement from Bernanke, there could be some histrionics in the marketplace.
I rarely use the futures for charting. There are times when I do. This is one of those times.
As for the S&P cash index, here is what I Tweeted yesterday and continue to feel:
$SPX fails the 50DMA. Not good. Eyes on 1188.36 then 1162 area. Break of 1136.07 targets below 1100. Above is 1223.41 and 1230.71 $$
The 50 day moving average is a big deal to large players, portfolio managers, and fund managers. If the S&P can't muster enough juice to at least retest it, this market will be sold hard.
The 50DMA is at 1223.4 this morning on the cash index.
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