Thursday, February 16, 2012

SPX Daily Chart Channel Overbot Rising Wedge Negative Divergence

SPX daily chart after the big run up today shows a higher high in price once again. But, it is an ugly chart. Note the negative divergence across the board (blue lines). Also, a rising wedge and overbot stochastics and RSI, all add up to a smack down coming perhaps as early as tomorrow, which would slap the bulls like the bears were slapped today. Note how price came down to test the bottom rail of the pink upward-sloping channel and this morning the bulls saved it from collapsing thru. That bottom rail is at 1344-1347.

The 200-day MA is flat and sickly showing a mediocre market in place. The volume is trailing off as well as it is harder and harder to find bag holders. Projection is smack down any time due to negative divergence, initial target 1344 to test that bottom rail again. 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.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.