Sunday, November 24, 2013

SPX Daily Chart Upward-Sloping Channel Overbot Rising Wedge Negative Divergence Price Extended Fibonacci Retracements

The SPX is set up to sell off; all it needs is someone to push it over the side with a feather. The central bankers keep finding a way to pump equities higher but the bears are assembling lots of downside fire power. Price is at the top rail of the channel thus an ideal place to reverse. The red rising wedge, overbot stochastics and universal negative divergence want to see a smack down. The pink dots show the price extension requiring a pull back. If the current print, give or take a couple points, remains in place, the red lines show the Fibonacci retracements and note how a 32% Fib honors the strong resistance at 1745-ish. Price has also violated the upper standard deviation band, for the second time in the last couple weeks, thus, a move to the 20-day MA at 1775, at a minimum, would be expected, and a move to the lower band at 1745, and rising, is on the table. A confluence of indicators is favoring 1745-ish so this may develop into a magnet area moving forward.

The central bankers keep the markets pumped higher. The chart wants price to sell off moving forward. Projection is a move lower to 1775, 1762-1763, 1757 and/or 1745. 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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