Rising Wedge

Yesterday the market failed to follow through on the buying that incurred following Tuesday's huge rate cut. As such, a trend has not yet been established and prices remain vulnerable to intraday reversals.

The SPY is trading in a rising wedge pattern. This pattern is quite bearish and unless we see some large volume up days we suspect that this pattern will resolve in a retest of November's lows.

We aren't comfortable shorting the market yet due to the recent bullish money flow divergences but unless buyers step up here this market is just going to fall on its own weight once again.