Simple Rising Wedge Pattern

Markets performed better today.  The NASDAQ rose above its 50 dma but the S&P500 & DOW remain below theirs.  They closed in the upper portion of their daily range, but volume was weak.

The market continues to trade in a fairly narrow range but the chart pattern has changed from a “channel” to a “wedge”.  This pattern could be characteristic of a market top.

Regardless of the method used to draw simple support and resistance lines, the upward trend appears to be weakening with a flat top and a break in support occurring on June 12th.  (See chart.)

The Federal Reserve’s 3.3% growth forecast for 2015 has been revised down to 2.3-2.7%.  Oddly enough, the lack of growth could keep interest rates from rising and continue to juice the stock market on to new highs.  Time will tell.

Simple Rising Wedge Pattern 150616

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