SPX 30-Minute Chart Sideways Channel Rising Wedge Overbot Negative Divergence

We watched the blue ascending triangle form and meet its target at 1295-1296. The light green lines show the negative divergence that spanked price down from the green arrow. Since the top at the green arrow occurred with negative divergence across the board, a move above that high of 1297-ish is not anticipated moving forward. Fast forward to today and price is all the way back up to this 1297-ish level. Friday will provide a decision.

The two red horizontal lines are the current sideways channel in place for three days. For Friday, the top red line represents the highs over the last three days, lets call it 1296.80, or 1297-ish to make it simple, and the market bulls want to push above that line to signal that the train ride to 1300 and probably 1320 has just left the station. The market bears need to push under the lower rail of the channel, the lower red line, across 1285, to usher in accelerated market weakness. For Friday, use the 1286 level as a guide, if you see that level lost, and the 1285 handle start to print, the broad markets should accelerate lower.

The 1281 level represents strong horizontal support, the base line of the triangle pattern, and the 12-month MA which separates the bull and bear secular markets. Thererfore, if the 1281 level is lost, the markets are in big trouble.

Today the 8 MA fell thru the 34 MA (bearish) but market bears could barely begin to salivate, before the 8 MA bounced and jumped upwards preventing the negative signal from occurring. Keep watching for the 8 MA to drop under the 34 MA, the RSI 50% level, the ROC zero line, and for the stochastics to drop under 80% then under 50%, all are bearish indications. The rising wedge in neon blue is bearish. Today's print is a doji candle, bearish. The pink lines show the higher high in price over the last three days but all the indicators are negatively diverged, very bearish.

This chart is bear-friendly. If the bulls do not bounce the markets at the open with a gap up move (above the top red line), the market bears should take over control and intiate broad market selling.  Bears are favored moving forward based on this chart. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.