Monday, June 8, 2015

SPX S&P 500 Daily Chart Rising Wedge Versus Ascending Triangle Lower Band Violation

Price continues to decide between the red rising wedge (bearish) versus the green ascending triangle (bullish). One of the two patterns will win. The bulls were throwing confetti in May when price broke up and out of the triangle only to see price collapse again and now fall out the bottom side of the triangle. The SPX continues to honor the upper and lower trend lines of the red wedge as time moves along and price failed below the lower red trend line last week. Monday trading is underway with stocks marginally lower.

The SPX has violated the lower standard deviation band now at 2089 so a move higher to the middle band at 2113 (also the 20-day MA) is on the table. This area would represent a back kiss of the wedge failure. The 50-day MA is 2101.15 and 100-day MA is 2084.62 (not shown). The bulls will be fighting to hold the 100-day MA support. The RSI over the last day, and stochastics now dipping in oversold territory may help lift price but the MACD line, histogram and money flow are all weak and bleak wanting to see lower lows in price after any bounce would occur in this daily time frame. The 2080-2090 level may be an area where a bounce can occur. Selling volume is more robust than buying volume. The SPX drifts lower to print at 20878 on the lower standard deviation band and testing the 100-day MA support. 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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