The triangle broke up as expected and SPX has made a new ATH with some confidence. This kind of setup delivers a termination move and that's what we are expecting here. That could fail at any time but the high window runs through to 7th February and we are expecting a high towards the end of the high window.
The usual sequence when a triangle breaks is that there is then a backtest of broken triangle resistance, often back into the triangle, and then the termination thrust (up in this instance) begins. That backtest doesn't always happen but most of the time it does, so I'm assuming we'll see that here as long as SPX stays under 2300. SPX 60min chart:
If we are going to see the backtest then there's a very decent looking rising wedge from yesterday's low. I watching to see whether that delivers the backtest here. ES Mar 60min chart:
Stan and I are doing a free educational webinar at
theartofchart.net an hour after the close on tomorrow on the subject of 'Technical Patterns you can profit from'. If you'd like to attend you can register for that on this page
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