Way of the SPX 500 - 110909

The session started with a slight drop of 0.22 points and then proceeded to test the Resistance at 1048.8 . The rise was stopped at 1048.18 and finished the day at 1042.73 . Looking at the Lower Chart one can see that the price action of the Index has been confined to a narrow Ascending Channel within a contracting Ascending Wedge.

Depending on your definition of a Doji, the session's candlestick is either a Doji or a Spinning Top that formed a bearish Harami. If there is follow through and a reversal takes place then the first target is the mutual Lower Boundary [ blue] of the contracting Ascending Wedge and the narrow Ascending Channel. at 1043±. Below that the support levels are 1025.9 - 1012.1 and 1000.3 .

If the Lower Boundary Support of the Wedge holds then the Index may make one last spurt to complete this upward cycle at 1055± . Then the Market would be ready for the reversal that we have been expecting for some time now.