SPX Daily Chart Rising Wedge Overbot Negative Divergence

The SPX continues to float upwards into the rising wedges. The last four candlesticks display two doji's and two hanging men, all four indicating that a trend change is near. The dots show how once price pierces the outer bollinger band (BB), price moves back to the middle BB at a minimum. The middle BB is also the 20-day MA, this is true for all charts. So we see that price has pierced the upper BB three days out of the last seven but instead of price venturing downwards to the middle BB, price remains elevated, moving sideways.

Note how volume is decreasing and yesterday's trading was done with vapor volume. If you ignore the expected holiday low-volume days, such as the 7/4/12 and 5/28/12 holidays on the chart, then the current volume is at decade lows. There is no conviction behind the upside rally move. Price prints matching highs for Friday and Monday and, if you squint realy hard and study the short red lines for the indicators, the case can be made that negative divergence is in place across the board. Projection is that a market downside move should occur at anytime, perhaps the retail sales data to be released in about three hours will provide a catalyst. 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.