SPX Weekly Chart Overbot Rising Wedge Negative Divergence Price Extended

The SPX weekly has been highlighted for the last three weeks. Stick a fork in it, it's cooked. The only thing is, someone needs to tap the SPX on the shoulder and tell it to sit down. The easy money crack cocaine is coursing through the broad markets' veins allowing the corpse to continue dancing a jig of joy. The chart is very bearish. The red rising wedge is a wicked omen. The collapses out of rising wedges can be quite dramatic. The red lines show negative divergence across all indicators and time frames although the money flow is trying to sneak out a near-term high to keep the game going a few more days or week or so. The RSI and stochastics are overbot. The pink dots show the price extension well above the moving average ribbon that requires a mean reversion as occurs every time.

The expectation is for a spank down in the SPX moving forward and that a roll over to the downside should occur at any time. The 20-week MA is 1767 and rising and serves as an attractive lower target for a test later this month and/or February. The markets keep floating along since everyone continues to believe in the Wizard of Fed controlling the markets form behind the curtain. Markets continue climbing a wall of Fed (instead of a wall of worry which would be typical behavior for a bull market). 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.