Wednesday, October 9, 2013
SPX Daily Chart Channel Failure
Yesterday the SPX lost the lower rail of the one-year upward-sloping channel (pink circle), obviously a very bearish development. As time moves along, price will want to back kiss the trend line failure at 1678-1682. If/when price bounces, it may form a right shoulder for an H&S. The negative divergence spank down (red arrow) continues. The indicators are weak and bleak (red lines) wanting to see lower lows in the SPX even after any bounce would occur for a day or three. S&P futures point to a higher start today. Interesting support levels that may be explored in the days and weeks ahead are 1627, 1576 and 1552-1553. Projection is a move sideways through the 1649-1685 range as the politicians battle against the debt ceiling deadline. Equities should maintain a sideways to sideways lower bias. 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.