Triangle Top SPX 10-1-09

Asymmetrical Triangles Don't usually form as the final wave of a Top. They are typically a wave 4 formation.

This Triangle is not complete ....but if this plays out over the next two days This suggests we could see another leg up.


This formation at this top of a Bear Wedge could become very whippy .

I Don't intend to play the first break up or down. I expect both will be false.
The safest play here is to get long above SPX 1077 or short below SPX 1040... Otherwise trade the Spx 1045 to 1070 zone as a sideways trending channel.

The biggest thing we have been fighting here is Bi- Polar market data ... There are so many conflicting fundamental Data signals it will be difficult to see a clear direction until we see a clean break above 1082 or below 1040.

It is still easy for the media people to make a Bear or Bull case in either direction and this creates confusion.

The most reliable approach will be to take the position that the news and Data is already in the charts and stay with chart formation, pure technical and Elliot Wave analysis.