Market Forming Another Upper Pivot/Wedge

The upper pivot/wedge-type pattern continues to develop as the market digests massive 2013 gains. Last Thursday and Friday the down open was bought. Today the up open was sold after an hour. I don’t think either the bulls or bears were ready to play the “new highs” game again,

The last two times we got some type of pivot/wedge pattern in February and April, the market saw small corrections of 3% and 5%, respectively. This time we have gotten a 3.3% correction so far. While most sectors held their 21-day moving averages across the board, macro guys didn’t have much of a reason to make adjustments. For the intermediate-term and active traders, it’s been prudent to stay tactical and continue to take trades as this upper range continues to be in play. We will measure the intermediate-term composure in the coming sessions when there is more clarity.

Here is the daily chart:

(click to enlarge)

Here is the 60-min chart:

(click to enlarge)

Disclosure: Scott Redler is long SPY, BAC.

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About Scott Redler 367 Articles

Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader.

Mr. Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Mr. Redler moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, continued to trade actively while working closely with all traders in the firm to dramatically increase performance.

Mr. Redler has participated in more than 30 triathlons and one IronMan, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business, Bloomberg, and he is a regular contributor to Minyanville and Forbes’ Intelligent Investing blog. He has been quoted in the Wall Street Journal and Investor's Business Daily, among other publications.

Scott received a B.B.A. in Marketing/Finance from the State University of New York at Albany, graduating Magna Cum Laude from Albany's School of Business.

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