Because a Bear Flag should be angled up, I decided to take a look at $SPX with a line rather than candles. The line shows only the closing price.
This sure looks like a symmetrical triangle and, according to Bulkowski, there is a 54% chance of a top side break out at about the 75% area of the triangle. Based on the gradual slope of both of the angles, $SPX might reach the 75% area some time late next week. Unless, of course, $SPX falls off a cliff in the meantime.
Today’s market moved on the backs of financials, with IYF and XLF up better than 2%. KRE was up 4.6% today, which explains why IWM took off at the close. But financials will have a tough time as replacements for the tech leaders that were hammered today. Maybe tech will rebound tomorrow and financials will head to the stars and not look back. I don’t know.
Chart courtesy of StockCharts.com
I like the view from the cheap seats and from here I can see that the 52MA on the weekly $SPX chart has turned north after dropping last week. Just sayin’.