SPX Weekly Chart Upward-Sloping Three-Year Channel

Just when it looked like price would not be able to regain the channel, bingo, price is back inside the safety of the channel for the last three weeks. Price collapsed thru the bottom rail of the channel as the August waterfall crash occurred.  The SPX has been in a fight ever since to regain the channel, and as shown by the first pink box for the October rally, popped up over the lower rail but fell thru again during the November market sell off.

Price is back up again into the second pink box and has not yet back tested the bottom rail.  That lower blue trend line is uber important so price has to show it respect, just like at the first pink box, and come back to test the bottom rail.  At that time price either decides to collapse back thru once again, or to bounce from the bottom rail and signal that the market bulls are back inside the channel for some time to come.

The 20-week MA under the 50-week MA is very bearish. From peak to peak, October to now, note the corresponding green lines for the indicators, all long and strong, bullish.  The lower three indicators do hint at negative divergence shown by the short red lines, but overall the indicators are saying they will likely want to see at least another test of these current highs or higher in the future, after a sell off.

Projection is for price to move down into the 1290's to test the bottom rail (this also satisfies the current negative divergence pointed out in the minute and daily charts), then a bounce back up to current levels then roll over for the weeks and months to come. After the projected near term sell off the next move up in price could very well mark the top for the year, but, first thing is first, a back kiss of the lower rail is needed. This information is for educational and enterntainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.