SPX Weekly Chart Fibonacci Retracements Key S/R Support Resistance QE2 Rally

SPX weekly chart showing negative divergence setting up. The current hanging man candle is in progress this week but you have to wait for the final look of the candle on Friday. Hanging man and doji candles typically signify trend changes in price.  A nice ending to the recent rally would be filling the tiny gap at 1340 to close out all loose ends, and a top in this 1340-1350 area. Price at this level would be a higher high than February and lock in the negative divergence shown by the indicators, thus, the SPX will receive a spank down in price.

As SPX price moves lower, the Fibonacci retracements target sturdy horizontal support areas at 1225, 1180 and 1140. This range represents the entry area for value investors that missed the start of the rally from last summer, started by Chairman Bernanke's QE2 POMO pumping program, and also did not want to buy at the current 1340-1350 top. These investors will get their opportunity at 1140-1225.

Price is topping now in the 1335-1350 zone and should roll over for sideways to sideways down for the weeks and months ahead. Key resistance is 1344 and 1350. Key support is 1315, 1300, 1275, 1250, 1225, 1200, 1180, 1140, 1120, 1100, 1060, 1020. 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.