The Sting of a Real Pattern

Going back to last Friday on the private Twitter feed for Market Chess Subscription Service members we observed a rising wedge pattern forming on the 30-minute chart of the QQQ, ETF for the Nasdaq-100.

The rising wedge can be deemed a bearish pattern, as it indicates buyers slowly losing control over the price action as the market grinds higher. 

True rising wedges tend to resolve sharply lower for a big breakdown. 

Again, timeframe is key here, since the Nasdaq clearly remains in a multi-year bull run. But on this timeframe we certainly seem to have gotten that rising wedge breakdown.

In the afternoon, it will be interesting to see if bulls can pull off another stunning V-shape rally to negate this circumstance, as they have done many times in recent years.