Chris explains:
Yesterday the Dow was down over 100 points, until the Fed announcement, which appeared to turn the markets around, at least in part.
Yet when you look at the chart, support is support until broken. Numerous times the 500 index has tested line (1), created a long downside wick, only to rally to higher prices.
As one we can see, the wedge off of the July low is about to end. Rising wedges don't usually end on a quiet note. Yesterday's chart of the Euro/Yen driving force, with its rising wedges usually breaking to the downside, suggest caution and for those wanting to score on defense (click here to review). The top of this wedge is as good as it gets with a stop.
