SPX Daily Chart Sideways Symmetrical Triangle Gap Fibonacci Retracements

The August-September bear flag morphed into a sideways symmetrical triangle shown by the blue lines. Typically, the first move out of these triangles is a fake out, which occurred in early October where a low was placed. The positive divergence (teal lines) then bounced price back up into the triangle and then shot it up and out the top side. The vertical side of the triangle provides a target for the upside of about a 100 points, so from the breakout, 1175-1180-ish, plus 100, yields 1280-ish which was satisfied.

Note how the 200 MA plays an important role with support and resistance (purple circles). At the late October highs, the MACD histogram, stochastics and money flow are all negatively diverged (red lines) which spanked price back downwards but the RSI and MACD line still want to see a matching high (green lines), at the least some price buoyancy, which is occurring now. Price has come back up to test the lower rail of the green channel, and failed, which is also the 62% Fib retracement for the 1286 to 1215 down move.

The 20 MA is above the 50 MA which is bullish. The RSI, stochastics and money flow are all above their 50% levels which is bullish. Note how the lower rail of the green channel intersects the critical 200 MA resistance at 1273 and also a 74.6% Fib rtacement woudl be in the 1268-ish area. Price is stumbling along sideways now waiting on European news. Note the 1238 strong S/R over the last 11 days and the 20 MA is coming up to target the 1230's as well. Thus, price is moving within the 1238-1273 boundaries now, Friday's close at 1253 right in the middle of this range. The gap at 1252-ish was filled late last week and there are no other gaps above that require attention although gaps exist below at 1195-ish and 1140-ish. Projection is sideways action thru 1238-1273 unitl price commits to one side or the other. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.