One would think, after a three-week hiatus, that there would be plenty to write about the market. But there isn't. The S&P 500 has drifted higher in an ever-narrowing ascending wedge pattern, making little progress. Since the mid-October top, the S&P 500 has only gained about 40 points. You can see on the chart that the price index has kind of oozed above the top of the wedge, but only by a tiny amount, and certainly not decisively. In my opinion, the ascending wedge has not yet been resolved, and the most likely resolution will be to the down side.


While I think a medium-term top is a strong possibility, I have no reason to think that a long-term top is likely. My Chart Spotlight article of 12/18/2009 still reflects my view for all time frames. Our Thrust/Trend Model (T/TM) is still on a buy signal as of 3/17/2009.

Bottom Line: We have been in an extended period of low volatility, and a period of high volatility is sure to follow. That will probably materialize as a medium-term correction; however, the long-term technical outlook is positive.

Carl Swenlin
About the author: is a veteran technical analyst who has been actively engaged in market analysis since 1981. A pioneer in the creation of online technical resources, he was president and founder of, one of the premier market timing and technical analysis websites on the web. DecisionPoint specializes in stock market indicators and charting. Since DecisionPoint merged with in 2013, Carl has served a consulting technical analyst and blog contributor. Learn More
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