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Stock Market: Reverse Back Down Appears Very Close

ByRobert H Anderson
Published 10/28/2014, 04:56 AM
Updated 07/09/2023, 06:31 AM

The charts are saying that we could "reverse" back down in the next day or two, because of a rising wedge pattern that started when the Dow went down 460 points on Wednesday October 15th.
SPX
Many of the common indexes including the S&P 500 and the Russell 2000 daily charts are showing this rising wedge pattern. I have included the Russell 2000 and the S&P 500 daily charts with this article.

The rising wedge is a bearish pattern that begins wide at the bottom and then contracts as prices move higher and the trading range narrows. When the index price gets closer to the apex or end of the pattern, the index reverses direction and heads down, usually with strong down momentum.
Russell 2000
An interesting aspect about these current rising wedge patterns, is they will hit their 50 day moving averages right at the apex and also hit multiple resistance lines at the apex.

it all spells reversal and I believe this reversal could be the one when everyone realizes that the last market highs were the start of a "new bear market". Confirmation will happen when the 50 day moving average crosses the 200 day moving average on the daily charts. The Russell 2000 daily chart has already done that and is leading the way down.

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