Thursday, January 19, 2012

SPX Daily Chart Six-Month Channels Testing Top Rail Negative Divergence

The top rail resistance is being tested now. See if price stays within the blue channel. The negative divergence wants price to receive a spank down now but note the RSI that managed to squeeze out the tiniest higher high. Therefore, price will want to come back up after any pull back to take another look at these current levels.  At that point, negative divergence will probably be in place across the board for more extended selling moving forward. 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.

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