SPX Daily Chart Overbot Rising Wedge Negative Divergence
The indicators are rolling over for two weeks but price keeps floating higher. The volume on Friday shows more enthusiasm for gittin' outta Dodge rather than sticking around. Aunt Agnes showed up at the trading floor with her life savings and placed it all long the market on Friday; the nice hedge fund man said he would take care of it, and he even just so happens to have some shares that he can provide. The SPX moves up into the red rising wedge, a bearish pattern. The stochastics are overbot, the RSI is coming off of overbot, and the indicators are universally negatively diverged across the board, the two and three week time frame as well as the last few days. Chart clearly says down but Chairman Bernanke is oiling the printing presses to keep them running through the holiday weekend. Someone needs to tap the market on the shoulder and tell it to sit down. 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.
nice TA work KS! Unfortunately your "Aunt Agnes showed up at the trading floor with her life savings and placed it all long the market on Friday; the nice hedge fund man said he would take care of it, and he even just so happens to have some shares that he can provide" comment is all but true. Just sat next to somebody on the plane who said that he invested in the market again since he pulled all money out in 2009. His words "we're so close to new highs, this is gonna be HUGE!" Yes, IMHO "huge" the other way... I said he should pay extra and careful attention now to the markets, but he was certain it go to the moon and beyond... Oh well....
ReplyDeleteThis is how the market rolls: suck in the last retail investor who's been on the side line all the time for a meager 50+ points upside, if lucky, before "lights out"... always has, always will