SP500 and the WEDGE. DOW and the SP500 both have wedges. Dow and the wedge are described in earlier blogs. SP500's wedge is easier to see and now with a powerful weekly bar breaking out on the downside and confirming the daily wedge.

SP500 week Friday April 19. See how last weeks bar just fell through the wedge and gave a clear signal that the uptrend might be over and probably a powerful correction or a beginning of a bear market is under way. The sell point use to be a rally when it reaches the break out line of the wedge.

SP500 day Friday April 19. The 8 and 21 MA's have also broken the line. A rally week April 22 will be the perfect point to sell if the falling 8 MA keeps down and stop the rally.

I am getting negative on SP500 and I think that now is the time to sell.

DOW 2007 monthly wedge shows what can happen when the 8 MA crosses the lower line.