ES is Crawling Up Bottom of Rising Wedge on Daily
Trader Moe | Apr 27, 2015 11:04AM ET
ES has Now Formed a Rising Wedge (Pink) Crawling Up the Bottom of the Rising Wedge (Red) on its Daily Chart
ES is now crawling up the bottom of the rising wedge on its daily chart.
A rising wedge across the bottom of a larger rising wedge is a strong tell that it’s very very late in the move. ES is massing along the bottom of the large red rising wedge for a breakout downwards.
The retrace target of the red rising wedge is the level of the lowest touch on the wedge bottom.
The pink rising wedge up the red wedge’s bottom also extends the red rising wedge, which means that no megaphoning is required after breakout downwards. Earlier this morning I posted about some smaller rising wedges that would likely complete with megaphones, but that is not the case for this large one on the daily.
The set-up is to redraw the bottom line of the red rising wedge so that it includes the pink rising wedge. Then short on the breakout through the new bottom.
If it happens soon, that would be a breakout through the ES 2080 level. That is also the level of the VWAP of a large topping megaphone on the chart.
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