Tuesday, October 22, 2013

SPX 2-Hour Chart Rising Wedge Overbot Negative Divergence Upper Band Violation

The rising brown wedge has been interesting to monitor since late last week. The bulls are the Energizer Bunny running higher day after day. The MACD line is finally rolling over satisfying the need for another price high by the green line. The red lines showing negative divergence for the indicators, along with overbot stochastics and RSI, and the rising wedge, will all serve to create a spank down. That thrust in the RSI was healthy so two more candlesticks may be needed to confirm the roll over, thus, 2 to 4 hours of trading time which is within today's session. The upper standard deviation band was violated so a move back to the middle band, at a minimum, at 1732 and rising, would be expected. The 1733 is strong support and serves as a target. Many times price will move to the opposite band which is down at 1701 and rising. The 1706 is strong support that can serve as a target. Looks like some market weakness should finally creep in as the day and week moves along. 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.

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