SPX S&P 500

SPY March 5, 2013 Bearish Rising Wedge and Open Gaps

I’m not a perma-bear but I AM short the SPY at the moment.

With every confirmation of my position I wonder if I’m biased. I’m staying short, for these 2 simple reasons:

  • There are now 2 gaps on SPY, one from Jan 2nd 142.56 to 144.73 and one from this morning. Gaps are always closed. On the individual stocks they sometimes stay open for a long time, but not on an index ETF.
  • I see a rising wedge. There’s a dozen other lines I could draw, but overall this pattern ‘speaks’ to me as the right one. Volume and stochastics confirm it.