Sunday, June 2, 2013
SPX Weekly Chart Upward-Sloping Channel Overbot Negative Divergence
The weekly chart is negatively diverged across the longer term and shorter term. Comparing the February 2011 price at 1350 to the current high at 1687 is a lofty 337 points higher but the RSI could bare print the same number. The green lines show some near term momo that was in place wanting to see an additional price spurt higher, which was received two weeks ago with the 1687 print and the RSI and MACD line show negative divergence with that new price high. The bears are good to go on the weekly basis. Downside targets are the 20-week MA at 1564 moving higher and the lower channel rail and 50-week MA at 1470-1540. It should be an interesting summer. 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.