SPX Daily Chart Doji's Overbot Rising Wedge Negative Divergence

The SPX daily chart shows two doji candles the last two days which typically signal trend changes. Note the paltry volume for this ongoing rally definitely not the participation you would expect for a sustainable move higher.  The red lines on the right hand side show all the indicators negatively diverged now, except for MACD line which will want to see another matching or higher high. The stochastics are overbot and the price action exhibits a rising wedge pattern which is bearish.

The two dark blue lines show the expanding megaphone pattern we were watching for the last couple months. It is always good to review prior developments whether they play out or not.  That downward-sloping trend line that served as the top of the megaphone will come into play again in the future; the trend line is now moving down thru the 1350's so perhaps it will provide price support in the 1340-ish area. The brown lines show the move off the top in early April and the developing bear flag that only saw prices continue to climb and take the bear flag off the table.  Price is now almost back up to the early April highs so a bear flag is nullified.  Nonetheless, the 150 handle drop from April to June can be projected to the current scenario as a potential outcome moving forward. Watch the RSI behavior moving forward.

Projection is a market pull back at anytime but the MACD line is long and strong so after a move down, the SPX will likely come back up for another look at these current levels before rolling over. And, of course, central banker money-pumping news, good or bad, will always change the picture immediately. 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.