Monday, November 18, 2013

SPX Daily Chart Upward-Sloping Channel Overbot Rising Wedge Negative Divergence Upper Band Violation Price Extended

Price jumps above the upward-sloping blue channel on the Yellen dove rally last week. Price is 6 points above the upper standard deviation band, a clear and strong piercing which should lead to a move back to the middle band, the 20-day MA at 1765.13, and rising, at a minimum, with the lower band at 1738, and rising, also in play going forward. The red rising wedge and overbot stochastics and near-overbot RSI are market negatives. Price is becoming exhausted in this daily time frame with only a little more RSI juice available. The bulls may want to receive the 1800 print today but the anticipation is that price will roll over to the downside moving forward.

The pink dots show price extended above the 20-day MA, above the 50 MA above the 200 MA which identifies the need for a mean reversion (lower prices) just like the prior pink dots. The price extension theme is in place for the monthly, weekly and daily charts.  A jog move to satisfy the RSI may take price up today, down tomorrow, back up, then roll over to the downside by mid-week for a more substantial move lower, or, simply down from here, however, the Fed, BOJ and other central banker stock market pumping is powerful. 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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