SPX 30-Minute Chart Sideways Channel

The chart shows the blue ascending triangle we watched which achieved the 1295-ish target. Now the red sideways channel 1281-1297 is in place over the last week. Yesterday's action saw price pop above the top rail of the channel only to leak away collapsing back into the channel by the close. Note the purple lines that show the higher high in price after yesterday's open, but, there was negative divergence across the board (study the downward sloping purple lines for all the indicators) creating the smack down. That area early yesterday morning was a nice short entry area.

The gap opening yesterday at 1290 remains open and will require filling at some point. The price move out of the 1281-1297 channel will identify the winner moving forward. Continue watching the 8 MA and 34 MA cross. Note that the 8 MA stabbed down thru on Friday indicating developing bearishness but now is back above. Watch the RSI and stochastics 50% levels; stochastics are failing. The black lines show a potential sideways triangle vibe starting to develop. Thus, a move above 1294, or below 1284, may provide the intial clue as price decides which side of the 1281-1297 channel to exit.

The pink box for the ADX shows that there is no strong trend existing, price is simply meandering thru the forest without allegiance to bull or bear. The move out of the channel will commit price. Projection is for sideways to sideways lower price moving forward, 8 MA should fall under 34 MA, RSI and stochastics should drop under 50%, and the 1290 gap should be filled. A test of 1281 is extremely critical since this is the 12-month MA. Failure at 1281 should usher in strong extended selling. 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.