Rising Wedge Abandoned for Rising Trend Channel

Last night as I studied the 5-month candlestick chart, I debated whether to adjust the trendlines on the rising wedge that we’ve been monitoring. I was seeing a possible rising trend channel. I still believed there were enough bearish technicals, like an OBV negative divergence and a PMO that had just topped below the signal line, to keep the more bearish rising wedge on the chart. Today it became more clear that we have a longer-term rising trend channel and Carl agrees (he texted me this afternoon!) — great minds DO think alike.

This puts a much more bullish spin on market behavior. I don’t think we are out of the woods, but the situation is less dire than the previous rising wedge implied.

I invite you to read the full DP Alert report on our website DecisionPoint.com. Here is an excerpt regarding some of the concerns that still are out there despite a rising trend channel….