SPX Daily Chart

SPX daily chart continuing to exhibit topping behavior over the last two months as the pink box moves along. The projected sell off from the overbot conditions, rising wedge and negative divergence occurred. Now the index is floundering in a sideways channel between 1303 S to 1331 R. The ADX lost its strong trend once the index rolled over in February.

Watch the 50% level for the stochastics and RSI to confirm sustained buoyancy, if above the 50%, or to confirm more downside ahead as the 50% levels are lost. 1260 R is a target which represents a fake out when utilities weakening in mid December. 1230 R is also a target below since that will test the large volume candle price and help decide the true path forward. Potential M Top in progress. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.