The mother of all ultra-bearish rising wedges, with an overthrow above the top trendline to get the bulls lathered up. As we see, the market is keenly aware of that upper trend line which it tested earlier this week. If you read the linked description of a rising wedge, this one meets all of the listed criteria. The most wicked aspect of a rising wedge, is that it gives the appearance of an uptrend, even though the upper trend line is not keeping pace with the lower trend line, requiring bulls to defend the same price levels over and over again, exhausting buying power on the way up, as evidenced by the declining volume. Compare the rally from 2003-2007 to this one. That one was a smooth uptrend with relatively little overlap between uptrend segments. This rally by contrast has been a lurching affair, as the market junky halted periodically to vomit all over itself, waiting for its next hit of monetary dopium. The HFT bots will see to it that Bernankenstein gets his boomerang back sooner than expected...
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| Wilshire 5000 (U.S.) Total Market Index |
