Monday, July 1, 2013
SPX Weekly Chart Downward-Sloping Channel MACD Cross
The rising wedge, overbot conditions and negative divergence created the spank down off the top six weeks ago. The MACD cross occurs (blue circle) signaling further trouble ahead. The indicators are all weak and bleak except for the RSI that created the market bounce last week. Note how price parked itself at the 20-week MA at 1587 a week ago, and held that level last week, so look for this moving average to play a key role moving forward. A downward-channel is in place with lower lows and lower highs. Price may want to test the critical 1618-1623 resistance gauntlet, the upper rail of the channel, where a bounce or die decision will be made. Volume last week, for the upside, was below the selling volume the prior week. Stochastics and money flow are under the 50% levels so watch to see if this is maintained, or not, and if the RSI drops under the 50% level into the bear camp, or not. The SPX may bounce, especially in this holiday-shortened week, but the projection is lower prices for the weeks ahead. 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.