Option Investor
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Ascending wedges are bearish and the SPX is making a very nice ascending wedge right at some very serious resistance.

Back in January and February, the SPX made a bearish double top and from there it fell from 877 to a low of 666 on March 6th. It has recovered nicely, as a matter of fact I just read the last six weeks were the best six weeks the market has had in 71 years. Now that is impressive. But it is right back to the bearish double top, very overbought and now has a bearish ascending wedge.

I don't much like wedges because, as I have written many times they are too subjective, but they can tell you when one side is losing control and the other is gaining. This wedge is telling me the bulls are exhausted and the bears are ready and willing to take over for a while.

The probabilities are with the bears now.

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