Stock chart patterns and technical analysis (TA) explained simply. Disclaimer: This blog and all its contents are for educational and entertainment purposes only. Do not trade or invest based on any information seen on this blog. Please read Terms of Service. The K E Stone blog sites (Keybot the Quant) are blacklisted by Google, so enjoy the ad-free experience, and only use the Donate button when supporting the sites.
Thursday, January 19, 2012
SPX Daily Chart Six-Month Channels Testing Top Rail Negative Divergence
The top rail resistance is being tested now. See if price stays within the blue channel. The negative divergence wants price to receive a spank down now but note the RSI that managed to squeeze out the tiniest higher high. Therefore, price will want to come back up after any pull back to take another look at these current levels. At that point, negative divergence will probably be in place across the board for more extended selling moving forward. 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.
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