The uptrend on the Wall Street Cash index shows signs of slowing. The breakout through the two highs at 10594 and 10578 on August 2 was key to the bulls maintaining the uptrend that began with the June 7 rally. This trend was tested with pullbacks in mid-June (and again in late June) but buying support remained steady. For the past five sessions, however, the daily chart shows there has been insufficient momentum to rally prices through 10700 (A), so this level remains the near-term ceiling. This level was also a ceiling during mid-January of this year, and therefore presents a significant obstacle for the bulls.

The daily chart for Wall Street Cash is currently trading within the narrowing range of a Rising Wedge pattern as the market cycle transitions to a sideways range; the two-bar Autochartist Initial Trend reading confirms that low volatility and range-bound price action has culminated into an accumulation market cycle. Because of this sideways market cycle, the Rising Wedge pattern's uptrend support is the level to watch.

If the ceiling at 10,700 can hold, look for a near-term correction to uptrend line support 10515 (B), which is also the low from August 6. The long lower wick left behind on the August 6 candle indicates just how much momentum the bulls had when prices traded lower towards 10500, so expect this type of reaction again unless prices pierce and close below this level.