Thursday, December 5, 2013

SPX Daily Chart Rising Wedge Negative Divergence Fibonacci Retracements

This is an update of the rising wedge on the SPX daily from the other day. Price has collapsed out of the rising wedge but is not making much headway south. Traders are holding things back until the Monthly Jobs Report number signals a thumbs up, or thumbs down, in the morning. Price violated the upper standard deviation band (pink) so a move back to the middle band has been satisfied, the 20-day MA at 1789.08, and a move to the lower band at 1759 is on the table. Price under the 20-day MA is bearish. The 50-day MA is 1749.55, and rising. This is at the same level as the 38% Fib retracement and the horizontal support at 1745. If 1782 fails, next is 1778, and if that fails, price will likely drop to 1759-1763, then if that fails, 1745-1750.

On the bull side, if a happy jobs report occurs, watch to see if the 20-day MA is taken out to the upside, if so, the bulls will pop the corks on the wine bottles and likely sneak higher to 1800. The green circles show 2 tiny gaps above, one at 1800 the other at 1793-1795, that will likely need filled at some point forward. The last 3 days of volume are larger than the other days over the last 3 weeks. At the same price levels, note how selling volume surpasses buying volume which is favorable for prices to move lower. The red lines show the negative divergence spank down off the top and the indicators are weak and bleak. Stochastics are sub 50% in bear territory, RSI is teasing towards 50%, money flow is sub 50%. It looks good for the bears, even if a bounce occurs due to the jobs report, weakness should resume due to the weak and bleak indicators.

Key S/R is 1814, 1807-1808, 1803, 1800.58 (last week's low), 1798-1799, 1796, 1791, 1789.08 (20-day MA), 1788, 1782, 1777.73 (200 EMA on the 60-minute), 1775, 1772, 1763, 1749.55 (50-day MA), 1745 and 1733. Projection is sideways to sideways lower going forward. If 1778 fails, markets will noticeably deteriorate. 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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