When it comes to trading, a huge piece of figuring out the puzzle is being able to identify simple patterns and have the knowledge of what their general sentiment is (i.e. Bullish or bearish setup). One of the main patterns technical traders focus on is the wedge pattern. This pattern is essentially when support and resistance trend lines are both sloped instead of one being completely horizontal (triangle patterns) and the other being sloped.
We here at TrendSpider have been watching $SPY closely. What we see here on the daily chart looks like a bullish continuation pattern. In this post, we will discuss why we think that is the case, and where we could be wrong.