SPX Daily Chart Tight Bands Signal Big Move On Tap

The pink bands are very tight indicating that equities will either explode higher, or, collapse lower in a big move. The prior tight bands (brown boxes) resulted in moves of about 20 to 60 handles so there will be one happy winner and one sad loser in the days ahead. The prior two moves were up, everything is in the bull's favor this year thus far. Rich Uncle Ben is always there to save the day. So will this time be any different? We will not have to wait long for the answer.  The move should be very sharp and quick so by this time next week we will be looking back from the 1720's and higher, if the bulls win, or from the 1660's and lower, if the bears win. The red lines show the topping behavior with the rising wedge, overbot or near overbot conditions and universal negative divergence across the three-month and near-term ranges. The indicators show that price has no need to move higher again, however, the Fed's money bazooka always stands ready to tip the scales in the bulls favor. The indicators are weak and bleak wanting to see lower lows in price even if a bounce occurs.

Watch the 50% levels for RSI, stochastics and money flow to determine if the bulls, or bears are winning. Money flow is already in the bear camp but RSI and stochastics are in the bull camp above 50%. Projection is for lower prices moving forward but if Chairman Bernanke grabs a microphone and says 'QE' then the bulls will win again. 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.