SPXEW

The equal-weighted version of the S&P 500 has developed a closing wedge or triangle. We typically see these patterns close just ahead of a spike in volatility. With May CPI due on Wednesday morning and the FOMC dog and pony show on Wednesday afternoon, there may be some cause for traders to go into Wednesday set up defensively. Not that I know that there will be some kind of sell-off during or after Powell's press conference. I do not, but rather because the chart of the equal-weighted S&P 500 is signaling an almost immediate increase in equity market volatility. That's a heads-up no one lese in the fin-meida has brought up...because half of them don't know their stuff.