SPX Daily Chart Upward-Sloping Channel Overbot Rising Wedge Negative Divergence

Price continues to respect the tight purple channel, for now. The overbot conditions, rising wedge and negative divergence forecast that a spank down should easily rupture the lower rail at 1360-ish. The blue line shows the volume participation by bulls is continuing to trail off as the index rises. This is a market negative. In strong bull markets, the volume should steadily rise as prices rise. The coming days should offer up plenty of market excitement.

The projection is down, with an initial test of the 1355-1360 area, a confluence of horizontal support and the 10-day MA. Then the big test of support with the 20-day MA, now at 1346.87. The behavior at the 20-day MA, as it always is for any index or individual ticker, is extremely important and will determine if bulls or bears win. The table is set. 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 financial decision.