SPX Weekly Chart Upward Channel Failure

This chart was the last hope for the market bulls. We watched the price action at the lower rail for the last three weeks. Price failed, dropping out of the channel. Thus, a back kiss would be expected considering thie importance of this long term two year channel, and, price came back up for the back kiss. At that juncture price must decide if it made a mistake and needs to jump back inside the safety of the channel, or, if it truly is weak and dies. Price back kissed, and collapsed.

All the indicators now point to lower numbers ahead in the coming weeks and months but note the stochastics that would like to see a little buoyancy in price now. The daily chart is setting up with positive divergence across the board so it would be prudent to see the indexes bounce to take a breather from the August slap down, but, as this weekly chart shows, there is more than likely much more pain ahead as the Autumn leaves fall. Watch for bulls to try to rally above 1155 (the 200 week MA and strong  horizontal resistance) and attempt a move towards 1200, but overall, the intermediate and long term look is sideways to sideways down moving forward for the months ahead. If 1119 fails, then 1101 should be tested. If 1101 fails, then 1044 is on the way. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or on any of the links. Consult your financial advisor before making any investment decision.