Well, the SP500 index DID break out above the wedge (bearish market timing signal) that I wrote about in last weekend’s SP500Tracker™. But not by much. We are at this moment (3:17 pm ET) just 3.22 points above the breakout point of 1296.06. This is not exactly a resounding blast through resistance, but it could survive as a breakout.
Most breakouts tend to be confirmed by the 3rd day after the breakout. It can take less or more time than that, but that is a rule of thumb. This would be the second day above the breakout point if the close stays above there. A close below that 1296.06 level could turn into a reversal leading to an intermediate term sell-off.
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