SPX Daily Chart Overbot Negative Divergence Channel

Price now poking up for a matching or higher high and note the negative divergence that remains in place. Price tapped on the bottom rail of that channel today and bounced.  Considering the negative divergence, it would not be surprising to see price fail below the bottom rail tomorrow.

Despite this three month rally, the 200-day MA remains flat as a newleywed's souffle, which is bearish moving forward. Bulls need to see that 200-day MA perk upwards if they want to smile. The volume is trailing off as it is harder and harder to find bag holders. Projection is smack down any time due to negative divergence, initial target is the horizontal pink support line at 1340-1344. 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.