SPY 2-Year Chart: A Rising Wedge Is Forming

With the market closing at new highs Thursday, there seems every reason to be bullish. Even so, I found myself closing out most of my positions at the end of the day today. Most of the best charts appear extended, and would benefit from a general pullback.

Taking a look at the SPY (SPY) two year chart, we can see price forming a rising wedge, with Thursday’s close near the upper trendline. Also notice the long term trendlines, creating overhead resistance. To top it off, we have five straight positive closes on mediocre volume.

All things considered, this seems like a good time to watch and wait. If we can pull back to the 100.00 area and find support, there should be an abundance of good setups.

If price breaks down below the rising wedge, it will be a different story.

Looking at individual stock charts, there are only a few I really like going into tomorrow. LPX has huge volume, and looks ready to continue higher.

- RTI has struggled a bit during the past two days, but has found support when it needed to.

- OSUR is an interesting bottom fish.

- TBV appears to be finding support after breaking out.

Some of the charts of gold miners look very attractive here.

- ANV

- EGO

- NGD

- SA

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