SPX Daily Chart Rising Wedge Overbot Negative Divergence

The daily chart tells the story of the early October bottom that occurred with positive divergence (green lines). Price catalpulted higher off this launchpad for the October rally. The red lines show the negative divergence as October ended that spanked price down. Note, however, that the RSI and MACD line remained long and strong (purple lines and circles) which signals that these two indicators want to see another matching and higher price high in the future. Today, the SPX moved higher taking out the October highs satisfying the purple lines and circles.

With the new high now, the teal lines show the negative divergence in place across the board, over the two-month timne frame, for each indicator except the money flow. The money flow is super bullish which has helped the SPX to continue skyward, but at the 95+ uber high level, there is no more space for money flow to move. This hints that after price falls, and then comes back up again, it will more than likely create negative divergence which would then have all indicators in negative divergence agreement and negativity to be prevalent in the broad markets.

The stochastics are overbot with no more upside space available, bearish. The rising wedge pattern is bearish. The money flow and the RSI long and strong profile over the last couple weeks will help create another price move upwards after a pull back occurs. The black line offers the path forward. A smack down should occur now due to the negative divergence in the two-month time frame, then, price will move back up before roling over. Projection is sideways to sideways lower for the days and weeks ahead. 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.