Last week we were focused on the SPY rising wedge formation, the technical expectation for which was that it would break down. Well, on Tuesday it did break down, but there was no follow through afterwards. Instead, it moved sideways for two days, then rallied on Friday, challenging Monday’s highs. The result is that the wedge has almost transformed into a rising trend channel. I say “almost” because there is still a slight narrowing at the top of the channel. Nevertheless, of more immediate concern is the overhead resistance presented by the declining tops line drawn from the October top, which could force another rising trend line break.