Tuesday, January 14, 2020

SPX S&P 500 Daily Chart; SPX at Record High 3288.13; Upward-Sloping Channel; Rising Wedge; Overbot; Negative Divergence; Upper Band Violation; Price Extended

The SPX prints an all-time record high and record closing high at 3288.13 on Monday, 1/13/20. The green upward-sloping channel shows the smooth machine-driven path the Federal Reserve laid out on a silver platter. Q4 was a non-stop bullish joy ride on the Fed's QE program. Central banks keep printing money and stocks keep moving higher.

Alas, the red lines, however, show universal neggie d across all indicators wanting to see a spank down in price which may be starting with today's sogginess. The RSI and stochastics are overbot agreeable to a pullback. The red rising wedge is a bearish pattern. Price has violated the upper band so the middle band at 3236 and lower band at 3180, both rising, are on the table. The only thing that could save the day is happy news and the US-China trade deal Phase One signing is on tap tomorrow.

The S&P 500 remains on an island above 3215 (blue lines). Price had gapped-up from 3205 to 3215. The SPX may drop down to 3215, and then gap down to 3205 in a heartbeat and then trend lower which would be an island reversal pattern, or, the S&P 500 would simply trend lower and fill the gap at 3205-3215 (it would be a gap-fill instead of an island reversal).

The chart says down but does King Donny, Dictator Xi, Pope Powell or other market movers have different plans? 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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