12/14/12 - EOD Update [3:15 PM Update]

[3:15 PM Update]

5 Min

Here is another view of the diagonal that I'm tracking. This is a rough view on the path it would take.

EOD Update

Looks like we didn't get to see the market resolve the ending diagonal that I had speculated during the course of the trading session. The ending diagonal or wedge has morphed throughout the session as well so it is not necessarily over yet.

The bears, however, closed with a slight edge going into next week since the market closed below the 50 day SMA and may be setting up a 3 of 3 event into early next week.

The bulls, however still have a chance if they can hold onto any weakness first thing on Monday and maintain the purple wedge as shown.

I think we should know pretty quick though, which way the market is headed. It will either flush down through the wedge quickly or snap out of it quickly.

5 Min 

60 Min 

So far, the breakdown of the wedge has seen prices move quickly lower, as is expected from diagonals. We are just trying to figure short term if the first leg of three is complete.