SPX 5-Minute Chart Textbook Ascending Triangle

Here is the 5-minute chart with the blue ascending triangle Keystone was talking about this afternoon. The bulls need to break up thru the 1462 baseline to place the pattern in motion. The vertical side is 6 or 7 handles, thus, 1462+6 = 1468-1469 as the target and 1468 is very strong overhead resistance. Note how price teased the 1462 even breaking thru for a couple minutes but then falling back under. The markets want to know the result of the Jobs Report before deciding.  Price bounced in the final few minutes closing inside the blue ascending triangle.

At the same time, a red rising wedge has entered the picture.  Ascending triangles are bullish patterns pointing to higher prices should they play out. Rising wedges, however, are bearish patterns pointing to a collapse in price. Thus, if the jobs report is happy, the blue triangle pattern will proceed with the 1468-ish target ahead.  If the jobs report disappoints, the red rising wedge will play out with this evenings close serving as a back kiss of the lower red trend line of the wedge, and price will collapse into the 1450's. For the price action over the last two hours of trading, the indicators are all weak and bleak (red lines) wanting to see lower lows print for price. The jobs report, however, will dictate the market move in the morning. If the SPX moves over 1462 the bulls are looking good but bears have one last hope for price to print in the apex of the red rising wedge at 1462.5-ish to allow for a reversal.  If price is printing 1463 and higher, the bulls will not look back, the markets will explode higher into a wild upside orgy into the weekend. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

Note Added 10/6/12 at 6:39 AM:  The Jobs Report created bullishness so the ascending triangle finished in textbook fashion. The 1462 breakout occurred and price tagged the 1468-1469 target.