Wednesday, June 26, 2013

SPX 15-Minute Chart C&H Inverted H&S Rising Wedge Overbot Negative Divergence

The 15-minute shows a blue Cup and Handle (C&H) pattern with base of cup at 1560 and breakout line at 1588 exactly at yesterday's close. Price broke out to the upside but then back kissed and parked at the 1588 overnight. The target for the C&H is 1616 if price punches up through 1588. The brown inverted Head and Shoulders (H&S) pattern is also in play with head at 1560 and neck line at 1600 which would target 1640 if the 1600 is taken out to the upside. The red rising wedge formed during yesterday's action and, along with overbot stochastics and negative divergence (red lines) created the late day spank down.

The RSI has a smidge of long and strong juice remaining and did not reach overbot levels. Overall, the price action forward may be a lot of sideways choppiness thorugh 1576-1600. If price climbs this morning, S&P futures are +6 about four hours before the open, this would likely allow time for the RSI to become overbot and set up with negative divergence to come in line with the other indicators and provide downward pressure. Key SPX resistance above is 1589, 1593, 1597-1600, 1609, 1614, 1618, 1623 and 1626-1627. 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.


  1. Hello KS,

    Look what I found in marketwatch's site.

    medical articles don't appear in marketwatch usually :) ...unless market conditions today or tomorrow ask such an article ;)

    lol! :)...guess a strong move will come soon ! :)


    1. without any logical link to the previous article :

      the 2 markets not in oversold are Japan and US ;)


      p.s. today as music background I have Offspring and Green Day :D ...gotta keep the pace with the market ;)

    2. That is funny. The number one thing that can probably prevent the most heat attacks is for the markets to calm down. LOL


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