SPX 30-Minute Chart Rising Wedge Overbot Negative Divergence

Here on Friday just ahead of the holiday weekend, price is working its way up into a rising wedge, overbot conditions and negative divergence so the upside appears limited from here and a spank down is in order. The ADX pink box shows a strong trend for this move up the last couple days so after a pull back some additonal upside should reappear. Looking at the top rail of the wedge, a break out above the 200-day MA at 1259-ish is not unreasonable and even price printing the low 1260's. A move of over 50 handles in three days deserves a rest. Watch to see if the 8 MA crosses down thru the 34 MA, if so, that would mean extended trouble ahead. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added 12/24/11 at 8:45 AM:  The SPX moved up into the 1260's as the session played out with a late day low volume push. The rising wedge, overbot conditions and negative divergence remain in place as the chart above shows, so price got a little big for its britches. The move up thru the 200-day MA at 1259.19 was important, this resistance now becoming support.  Monday and Tuesday will show if the punch above has staying power, or, if price simply collapses back under.  The TRIN printed an uber bullish 0.64 so some market give-back may be in order to move the TRIN back up towards 1.0. NYHL moved off its perch but would be agreeable to some further market pull back.  NYMO at 49-ish is in the territory where a market pull back would not be unexpected.  Thus, considering that a  back kiss of the 200-day MA is needed, plus these VST indicators, plus the negative divergence in the chart above, a slight pull back in the indexes is required to rest and consolidate.  But, the three day move has lots of momo, so some higher highs will probably be coming after a minor rest. 1267 is key resistance above. As always, markets remain at the mercy of Europe, and Italy 10-year yield moved back above 7% in Friday's trading signaling a continued shaky trading environment.