Wednesday, September 16, 2015

SPX S&P 500 2-Hour Chart Ascending Triangle

The ascending triangle pattern has been highlighted over the last week as it forms. The 1985-1988 level is uber strong price resistance. The 1990 level is important so the 1985-1990 range is the battle zone and baseline of the triangle. Bulls win huge above 1990. Bears continue to run the show under 1985. Price is at 1984. The vertical side of the triangle is about 120 points so the upside target is 2110 if price moves above 1990.

Of course Fed Chair Yellen controls the outcome and the story will be told at 2 PM EST tomorrow (Thursday, 9/17/15). The green lines show long and strong indicators so price may remain buoyant for a couple or four hours today but at that point may move lower again continuing the move through the triangle. This would place the decision at 1985-1990 firmly in Yellen's lap tomorrow. She is like Caesar of ancient Rome. Yellen will outstretch her right arm and either turn her thumb up or down determining the fate of all global markets. 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 7:19 AM EST on Thursday morning, 9/17/15: The bulls punch up through the triangle baseline yesterday and park price at 1995. That is a big win for bulls. The wild card is the FOMC rate decision this afternoon which can reverse the breakout or enforce it and create a stronger move higher. The same ascending triangle pattern is in play for the Dow, Nasdaq and Russell 2000, all are breaking out higher, however, there is a fine line between an ascending triangle (bullish) and rising wedge (bearish) so the path ahead all comes down to what Yellen says (reference the RUT chart posted this morning).

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