SPX Daily Chart Descending and Sideways Symmetrical Triangles

The red descending triangle remains in play, note the failure under the 1125 base line, then recovery, now price is above the top rail. At the same time, a sideways symmetrical triangle is in play shown by the blue lines. Typically, this pattern plays out with a fake out, note the failure out the bottom, then price returns inside the triangle and comes out the other side, for this chart, price then came out the top. The green lines show the positive divergence that formed for the price collapse as October began so price bounced as would be expected. The green lines for the last few days show the RSI and MACD with a long and strong profile wanting to see a matching or higher high moving forward. The stochastics and money flow, however, want to see at least a small pull back occur right now. Note the negative divergence red lines in the one month time frame that also foretell some leveling off and pull back in price coming.

Projection is for price to moderate sideways in the days ahead then the overall weaker secular picture should reemerge. In the days ahead watch for negative divergence to form for the RSI and MACD over the recent week or so which will tell you the up move is over. For now, the RSI and MACD are agreeable to maintaining price buoyancy. A pull back, followed by another move up to these current levels should line out the chart with negative divergence for all indicators. 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 financial advisor before making any investment decision.