A pioneer in the creation of online technical resources, he is president and founder of, a premier technical analysis website specializing in stock market indicators, charting, and focused research reports. * * * * * * * * * * * * * * * * * * * * *īIO: Carl Swenlin is a self-taught technical analyst, who has been involved in market analysis since 1981. Technical analysis is a windsock, not a crystal ball. Be prepared to adjust your tactics and strategy if conditions change. While it will make the bears happy at first, I don't think the correction will last more than a few days.
More important is the fact that the medium-term market behavior has been clearly bullish.īottom Line: The ascending wedge pattern on the S&P 500 chart is a failry reliable signal that a short correction is due at any time.
Another thing to consider is that, if a break down does take place, the duration and amplitude will probably be short term in nature, because the entire formation only covers about a two-month time span, and it is more shallow than steep.