SPX 30-Minute Chart Megaphone Rising Wedge Overbot Negative Divergence 8 MA and 34 MA Cross

Big launch yesterday with Chairman Bernanke throwing money from helicopters. Note how price is tapping at the top rail of the megaphone pattern again. Note the negative divergence over the last day except for RSI so a move down then back up to match these highs then roll over should be on tap. The smal rising green wedge now is bearish.  Negative divergence appearing over the one week time frame for RSI and stochastics, and over the two week timeframe or longer for all indicators which want to see price move down.

Pay attention to the 8 and 34 MA cross in real-time during trading hours; if bullish you want to see the 8 MA above the 34 MA, if bearish you want to see the 8 MA below the 34 MA. On Friday the 8 MA crossed above the 34 MA hinting at bullish fun ahead. For a megaphone pattern, the farther that price ventures skyward and extends the top rail, note that the bottom rail has to be extened as well providing even lower price targets should this pattern play out moving forward. This information is for educational and entertainment purposes only. Do not invest based on anything you read here.  Consult your financial advisor before making any investment decision.