Tuesday, September 3, 2013
SPX Monthly Chart Rising Wedge Overbot Negative Divergence
The monthly charts receive new prints last Friday and the SPX is down 2 of the last 3 months, and up 7 of the last 9 months. The chart shows price topping out with exhaustion, the volume is dropping off as well. With all the central banker shenanigans, however, the Fed or others, or the politicians, may find a way to goose markets so 1700+ and the 1720's cannot be taken off the table. The strong momo this year may need time to dissipate as well. The indicators all say down except for the MACD line that would like to see perhaps one last bump higher in the apex of the rising wedge either this month or October. Watch for a cross in the MACD lines (blue circle) in the months ahead since this signals extended market weakness for months to come. Projection is sideways to sideways lower moving forward. 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.