Monday, October 13, 2014

SPX Daily Chart Lower Band Violation

The SPX was smacked last week after the up-down-up roller coaster ride. Price is at the August lows interestingly closing lower than August at 1906.13 but not taking out the August intraday low at 1904.78. Price has violated the lower pink band severely at 1917 which will want to see a snap-back recovery and the 200-day MA at 1905 in this area is a logical bounce point. The band violation places a move back to the middle band at 1972 and dropping on the table. This is the strong 1963-1973 resistance gauntlet area discussed in the SPX S/R missive a couple posts back. 

The RSI and stochastics are positively diverged and agreeable to a bounce but the MACD line, histogram and money flow indicators are leaking lower, weak and bleak, and likely want to see lower lows in price after any bounce occurs that may take a day or three. Note the robust selling volume candlesticks. If a recovery rally gains traction watch 1924, 1928 and the very important 1936-1937 resistance. 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 7:02 PM: The SPX bounces today above 1912 then collapses 31 points, -1.7%, to 1875.

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