SPX Daily Chart Negative Divergence Upward-Sloping Channel

Big three day upside from 1329 to 1389, 60 handles, which reinforces an upward-sloping channel for the last 2 1/2 months. The green lines show the long and strong profile during June that wanted to see higher highs with price. The higher prices printed but the red lines show the indicators rolling over and exhibiting negative divergence.  This caused the spank down six days ago. SPX 1391 is important resistance above and 1366 is important support below.  Price is also honoring the 50-day MA at 1335 as support. The blue square in May and the one in June shows where the uber euphoric +1500 TICK numbers occurred like Friday's super high TICK.  After those uber high TICK's, the SPX had an intraday or two day tumble of from 17 to 30 handles before recovering to new highs.  The NYAD printed over +2000 and TRIN prints 0.28, the lowest close (signaling uber bullishness) since December over one-half year ago. The markets are begging for a snap back move lower to relieve this bullish pressure.

For the two bullish days, volume remained below the volume seen in June at lower price levels.  If the markets were strong, the volume should exceed the previous levels. Watch the red lines for the indicators over the last six days to see if the negative divergence remains in place or if any of the indicators move higher; the RSI is flatish currently. 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.