Yesterday we saw the S&P 500 index completing a minor wedge formation that has been building since ultimo October. When a wedge formation is completed the target is back to the start of the formation, which means a decline to 3,234 should be expected in the coming weeks.
Be aware, that the lager uptrend in the S&P 500 index remains intact and the completion of the wedge-formation could mean, only a temporary top is building and more upside could follow after a correction to at least 3,550 and ideally to the beginning of the wedge-formation at 3,234.
We have also seen the VIX index breaking out of a sideways consolidation indicating more volatility in the near future also favoring more downside pressure in the S&P 500. If the VIX index break above the support-line near 39.30 that will open for plausible panic sales in the S&P 500.
The S&P 500 and the VIX index moves opposite each other, which means a rising VIX index means a decline in the S&P 500 index.
Remember that the trend and patience are your friends.
