The past month, the US equity markets has been a chop fest. It has been virtually impossible to do technical analysis on S&Ps. All of the mess the past month has formed some technical set-ups that could provide some guidance on where this market could be headed.
S&Ps have formed a base at 2010 lows, thus making the action in the “flash crash” close to irrelevant. It also has formed a descending triangle, a potential bearish formation. If it violates the triangle on the upside (and it is right at the upper trendline of the triangle), it will encounter support/resistance at the 38.2. My bullish cap will come on if it goes past the 38.2. The action this past week though, formed a bearish wedge. If the pattern continues as such, it will eventually touch support & go though support on the downside, thus making new 2010 lows.