SPY Broke Below the Wedge

Here's what to expect today and how I plan to trade the breakdown.

PRE-OPEN MARKET COMMENTS THURSDAY – This morning the /ES futures are opening 35 points lower and we are seeing follow through to the post-FOMC drop. The upward sloping trendline for the SPY that started in March was broken on heavy volume and the long red candle closed on its low. This is how we want to break support. We have broken out of the wedge formation and that was expected. We just did not know which way the market would break. The price action has been compressing and both extremes for the wedge were within striking distance.

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