Last week the descending broadening wedge pattern appears to have broke to the upside with a successful back test of the upper trend line. If that is correct, it would imply a much higher target price of approx 2125 possible over the next 2-3 months. That price also happens to be right around the upper long term trend line and if reached may mark a significant reversal point.
Short term, there looks to be a rising wedge developed over the past few days. There should be a higher chance of a downside resolution especially considering the long term trend line that broke two weeks ago is directly over head and on first attempt with s/t overbought conditions a rejection may be likely. Downside weakness should be limited to around 1930 or the upper line of the wedge pattern. Below that and another pattern is likely developing. If the wedge breaks up then s/t target of 2010 will come into play. With federal reserve on Wednesday this scenario can't be ruled out.
Short term, there looks to be a rising wedge developed over the past few days. There should be a higher chance of a downside resolution especially considering the long term trend line that broke two weeks ago is directly over head and on first attempt with s/t overbought conditions a rejection may be likely. Downside weakness should be limited to around 1930 or the upper line of the wedge pattern. Below that and another pattern is likely developing. If the wedge breaks up then s/t target of 2010 will come into play. With federal reserve on Wednesday this scenario can't be ruled out.
