Friday, June 20, 2014

SPX Daily Chart Rising Wedge Overbot Negative Divergence

The SPX daily came up for the higher high as discussed a few days ago. Over the last two weeks, we are watching the two peaks with negative divergence developing with the higher highs in price. The indicators wanted the spank down in price two weeks ago except for the MACD line that was long and strong wanting one more price high. Price comes up for that higher high and note now how neggie d is in place across all indicators, thus, this is a top right now and a smack down should begin. Watch to see if price loses the lower red trend line when it moves lower.

The SPX continues to desperately need to back kiss the 20-day MA at 1935.17 and rising. Note the buying volume in recent days. Not one of the individual day's volumes exceed the selling day volume 6 days ago. Projection is for stocks to top out probably today, if not, Monday, and move lower like the top that was placed a couple weeks ago. 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.

Note Added 10:00 AM on 6/21/14: The neggie d described above remains in place. The SPX prints another new all-time intraday high at 1963.91 and new all-time closing high at 1962.87. The volume is robust mainly due to OpEx Quadruple Witching but nonetheless the bulls have to be given credit for a strong volume up day. The RSI is squeezing out a hair more upside juice so the expectation would be a move down, then back up, then that top would lead to more extended downside action ahead. The 20-day MA at 1935.21 and rising, is a great target underneath since it needs back tested. Thus, perhaps down to 1940 (since the 20-day is rising and will form a strong confluence with support at 1940), then back up to the 1960's, then roll over for extended downside ahead. This scenario should occur over the coming days, or week or two. Another outcome is a more mild drop now to 1955, then recovery to the 1960's, then roll over and drop down to the 20-day MA at 1935-1940 and lower. The bulls could always come in with extra juice on a happy news event which would extend the move higher but that will be known early next week if it is a possibility, or not.

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