Take a look at the one or two year Nasdaq Composite. For the upper line join the peaks in August 2002 and late November 2002. Then for the lower line join the line from the October 2002 low and the bottom of the December 2002 low. Isn't that a huge wedge?
I guess you could see it that way. But what does that mean for us? If the market breaks out to the upside, it will probably be quite violent. So I'm still not comfortable going short over night. On the other hand, who says we won't see new lows in the next few weeks?
I noticed a wedge on a European index last night which scared the bejeebus out of me(I'm short). Five years ago, I bet with a similar thing(while trading in Europe), but then again, it was a bull market.
Hi One thing you will notice in the shorter term is an almost perfect Head and Shoulders formation on the DOW and S&P. Very close to necklines (DOW around 8200, S&P around 870). Given Blix report etc, wouldn't be surprised to see a break over the next few days. If it does, a big spike down is in order. Bouds
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Yes, it is, and the implication is for a downside move. However, since it's not very sharply angled, don't expect anything dramatic. That doesn't mean something dramatic won't occur; just don't expect it. --Db