Did anyone listen to the interview this morning with the technical analyst on CNBC who discussed the wedge formed on the major indicies? He said that the market will likely continue in the direction of the break, which I agree with. He also said the the break would most likely be to the upside, which I disagree with.
By definition, "wedges" are a continuation pattern, not a reversal pattern. The wedge that appears to have been formed since the January-08 lows resembles a wedge formed between mid-November-07 and the end of December-07. A downtrend preceded that wedge. A further breakdown to the January-08 lows followed. A downside breakout should be expected from the current wedge. We'll see.
did he really say that he thought it was an upside break? i heard the part where he showed it, and then pointed out that it can break in either direction, and they're not players until it breaks and they kept pressing him for a target, and he said IF it breaks (some number) that it then goes to (some other number). but i could be wrong, had a few positions open that i was babysitting at the time.