SPX Daily Chart; Upward-Sloping Channel; Upper Bollinger Band Violation; Overbot; Negative Divergence

Last Friday, the daily chart shows price testing the closing high from Friday, 9/14/12, the day the intraday high for 2012 was also printed. Last riday, price poked up thru the closing high at 1466-ish but retreated to close at 1460 unable to print a new closing high.  This creates the flat price action shown by the short red line. Looking at the indicators, they are all negatively diverged as price was producing matching highs. This divergence is creating the early market negativity today.  SPX 1453 (10-day MA), 1450 (the low from last week), 1446 and 1440 all serve as lower support levels.  Note that price tucked itself back inside the thick blue channel on Friday. Watch to see if price now stays inside the channel again. Watch the middle channel lines to see if a bounce occurs from these price levels, if the markets continue lower today.

The selling volume on Friday slightly outpaced the uber high day on 9/14/12, while testing at the same price levels 1460-1470, which is a tiny feather in the bear's cap.  The upper BB was viloated strongly during the wild orgy move on 9/14/12 where traders tripped over each other to buy the Fed's QE3 move the day before. The black dots show how price moves from upper BB to lower BB then back up again so now it is the bears turn for the days and weeks ahead.  Note how ht etight BB corresponed directly with Draghi's ECB bond-buying announcement on 9/6/12. We were watching that at the time which obviously resolved with the tight BB's squeezing price out in the vertical direction. Pay attention to the short red lines as price continues along to see if the negative divergence remains in place. Money flow may want to explore the 80% level so that cannot be ruled out. If the negative divergence remains, price will continue to roll over 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.