SPX Daily Chart Triple Top in Play

SPX daily chart showing the potential triple top currently in play that media has not recognized as yet. The three highs are all in this 1340-ish area. Note the blue negative divergence that caused the February spank down, then after the March bounce, more negative divergence (green lines) but the histogram and money flow wanted price to move up again for another higher test. And that is where we are at now, price has come back up to create the third top for the chart. There are no guarantees in charting but the negative divergence forming now during April is across all indicators but price needs to print that 1343-1344 number to make the divergence official.

Lots of drama this week with the FOMC meeting and Chairman Bernanke's first Q&A on Wednesday afternoon. Volume is trailing off slightly as the three tops are formed, the trend of larger volume down days versus lower volume up days remains in place as well, so the edge is given to the bears, for now.

A key element to this potential triple top will be if the lower trend line is broken, or not, and that trend line is moving up thru the 1300-1325 area right now. If the lower trend line fails that will verify that the triple top is in place and lower prices are on tap moving forward with a target of that March low at 1250-ish. If that occurs, the triple top pattern will ulltimately target 1160-1175. 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.