Taking a look at the direction for next week, The S&P 500 chart has formed a rising wedge pattern. It has currently closed at the top and underneath the top trend line at 869.60 on Friday the 17th. Friday the S&P 500, also bounced off a 78.6% fib-retracement level from the high on Jan. 6 2009, and trend line resistance from the highs form Jan 28th and Feb. 9th 2009. The MACD Histogram and the Slow Stochastic both are showing negative divergence with the Price action. All signs point to a move lower in the markets. But I will be waiting the conformation of this move before entering a short position, The market has been so strong lately that I want it to prove to me that I need to go short. On monday we have BAC (Bank of America's earnings), analysts are expecting 5 cents a share. BAC Looks like its set up for a pop with the Bullish pendant pattern that has formed but with the overall index's showing weakness, Monday is going to give a good indication on market direction. Targets if there is a break down in the market in the coming week is the 20 and 50 period SMA then fib levels 38.2% and 61.8%, If we break to the upside out of this rising wedge, next level to be seen is 910.
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