11.07.2011 -- Hidden big wedge?

So I think we had a hidden big rising wedge here for our wave 2 up. Which I think its obvious to most everyone that we are not in the big wave 3 down yet.

The interesting thing is that we are withing a week or 2 maximum for this wedge to finish. But we'll get into that...

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Key Levels
Upside -- 1262, 1273, 1290-1310

Downside -- 1252, 1228, 1197, some weak support in the 1150-1160 area

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SPX Daily;

So.. the blue trend on the top is just to show upside resistance from our initial decline.

But there's our big wedge. This had looked like a rising channel, but I had to sort of pick the spots the whole time and was never really super comfortable with it, but it was the only thing that at least fit o.k. This rally has no provied us with a bottom trend that creates a steep bearish rising wedge.

Look how close we are to completing it. We are narrowed to about 35 S&P points of space. We have already had one false breakout.. there may or may not be another. My vote is that there will not be another breakout to the upside.

I give this pattern another 2 weeks max, but it could really break at any time. I believe this is our wave 2 wedge and we are close to done.

IF we use the full 2 weeks.. it is possible that we get another thrust up and do one more fake breakout and maybe touch the 1300-1310 zone for a day or 2. It's possible but not necessary.

I still am very surprised that this market is setting up to have a very very dramatic sell off straight into the holidays. That would be a very rare event.

GL

CJ