Sunday, December 4, 2016

SPX S&P 500 Daily Chart

Remember last week, Keystone posted this SPX daily chart when the top was printing six days ago. That was the thin blue line where you see that the overbot stochasits, and slightly neggie d stoch's and neggie d with the histogram conspire to create the pull back but the green lines for RSI, MACD line and money flow were long and strong printing higher highs as the SPX prints higher highs. This hinted that price needed to come back up for another matching or higher higher. It did.

The SPX comes up to test the 2213-2214 all-time highs three days ago and then collapsed. That day is a key reversal day with price printing at or above the prior high and then below the low as compared to the three prior days; a bearish indication. Most importantly, the horizontal red line shows price printing the matching high so the indicators can be judged to see if they are in negative divergence and all the indicators are neggie d (red lines) so price is spanked down from the top.

The RSI stalls, ditto the money flow, over the last two days creating enough oomph to provide a small recovery move last Friday. The MACD line is weak and bleak and the MACD cross may turn negative to begin the week (bearish). The stochastics are weak and bleak wanting to see a lower low in price after any bounce. The 20-day MA at 2177 and rising needs back tested. The SPX may want to come down to test the 2175-2188 level before bouncing. Bears need the RSI and stochasitcs to move below the 50% level into bear territory, and the negative MACD cross, to guarantee further downside for stocks. 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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