Examining a longer term chart of the S&P 500 confirms that we are still in a falling wedge pattern, despite recent gains. Should the rally give way here, many traders will begin selling in to the weakness.

Chart of the US stock market

We could see the S&P climb as high as 900 without fundamentally violating this pattern. Support areas are shown with horizontal lines on the right side.

Posted by Alex, filed under Futures, Stocks. Date: November 27, 2008, 2:50 pm |

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