SPX seems to be forming a large rising wedge here with structure beginning early August. I am looking for the gaps to be filled, and there are now many to fill within reasonable range - gaps are at $3275, $3310, $3340, and most recently a small gap at $3410. Volume has notably decreased as we move up which is a bearish divergence. A pullback to fill all gaps down to $3275 would be a 5% pullback, which should be expected historically; I am unsure if all these gaps will be filled so we will have to watch how this plays out but a 5% pullback would not change the structure of this renewed bull market and I will look to go long if/when that occurs.Disclosure: I am heavily long currently & looking to unload some trading longs for cash to buy at lower levels.
Note
A little update. Of course, immediately after I posted through SPX broke out of my wedge to the upside. In fact, it's gone virtually parabolic since $3355 test. There is nothing stopping SPX from going higher next week; although, I do not expect the euphoria to last much longer as this price action seems a bit unsustainable to me. I am on looking for solid shorts in this market (TSLA AAPL for example) as I continue to deleverage longs into this euphoria.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.