Sunday, June 11, 2017

SPX S&P 500 Daily Chart; Overbot; All-Time Record High 2446.20; Negative Divergence; Upper Band Violation

The red lines on the daily chart show negative divergence in play. The neggie d along with the overbot stochastics want to see price move lower. The money flow may have a tiny smidgeon of energy to create another jog move (down one day up one day then roll over to downside) but the indicators in total would like to see price slapped lower.

Intraday Friday the SPX was sent lower with a wild 31-point drop in the SPX off the 2446.20 all-time record high. Price recovered into the closing bell to end the week. Note the Friday candlestick with very long shadows representing the new all-time high at 2446.20 and the LOD at 2415.70 ending in the middle at 2432. This behavior indicates a knock-down drag-out battle between bulls and bears ongoing.

Price violated the upper band (pink) six days ago so the middle band is in play at 2409 and rising. The SPX came down to 2415 on Friday but it would need to actually touch the middle band, which is also the 20-day MA, to show it the proper respect it demands.

The 200 EMA on the SPX 60-minute chart posted earlier is down at 2406 and rising call it the 2406-2410 area. It is interesting that the middle band is in this same range, thus, a magnetic pull is developing that may foretell a potential test of this critical 2406-2410 level. This would be epic drama since a failure from 2406-2410 and stocks would likely collapse quite dramatically.

The chart does not show a reason for price to move higher. What can save the market bulls is if President Trump or one of his henchmen start touting infrastructure spending, lower regulations, or tax reform which will automatically goose stocks higher and the charts would need to reset. 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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