SPX Daily Chart Shows Sideways Ranges H&S

Lots of sideways movement for the broad indexes over the last month.  The thick green lines show the ongoing H&S pattern in play targeting 1260, the starting year number for the SPX is 1258, which is not yet achieved to satisfy the pattern. The indicators are exhibiting a sideways vibe.  The green lines in late May-early June show the positive divergence that bounced price from the early June low. But note the MACD line (red line and red circle) that wants to see price come back down for another test of that 1260-1270 area. The action over the last few days is long and strong as shown by the thin green lines for the indicators except for the money flow that is weakening which hints at price moving down again to honor the sideways nature of price currently. The 20-day MA at 1312 is very important so continue monitoring that in the days ahead.

Three sideways ranges are in play.  First, note the 50-day MA pinching down, while the 200-day is pinching up squeezing price in the center of this 1290-1353 range. Price will eventually decide which moving average it will exit which will determine market direction.  The second range of interest is the black sideways channel thru 1280-1340, the bottom rail representing the recent bottom while the top rail represents the neck line of the H&S.  A back kiss has occurred of the neck line, in fact two back tests thus far, so price is agreeable to head lower to the 1260 H&S target. Concerning the 1280-1340 range, it is important which side price will exit this range.  The third and tightest range is the 1307-1326 range highlighted in a previous chart. Again, the price movement out of this range will be an important indication of which way the markets want to run.  The sideways nature of markets continues as the third act of the Greek Tragedy will play out on the weekend, no doubt resulting in violations of the ranges highlighted. 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.