Off the Charts

Today's action did nothing to derail our hypothesis that the market could be building an upper level wedge pattern to digest recent volatility. The S&P opened firmly lower this morning after some weakness in European markets. After some additional early selling, the index was able to stop the bleeding and close back near where it opened, down 0.7%.

Today's gap down came on the heels of yesterday's gap up that was sold during the session. The market was not ready for more new highs, but it also doesn't feel ready for a deep correction. From a pure technical perspective, though, you would have to say that last Wednesday's outside bearish reversal still "controls" the market because it was the most recent loud technical signal. However, short-term traders love to see wedge patterns build because they can often take the guess work out of things. If the pattern continues to tighten, traders will simply be watching closely to see which direction the pattern resolves to forecast the next leg in the market....839 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.