SPX Daily Chart Upward-Sloping Channel Overbot Negative Divergence Doji and Hanging Man Candlesticks

Price jumped up and out of the upward-sloping channel eight days ago and remains in a sideways funk, with a rising wedge vibe. The candlesticks over the last six days show; doji, doji, hanging man, hanging man, doji and today another doji candlestick. One of these is typically all it takes to initate a trend change. Simply reference the prior trend changes all occurring with doji's and/or hanging man candles as shown by the blue circles.  Perhaps this trend change coming is a doozy since it has been signaled for six days in a row.

Note how the volume participation has fallen off a cliff. There was not even enough volume today to match the volume on prior up days, thus, price continues to float upwards on less and less participation. The most important takeaway from this daily chart is the red lines showing negative divergence now printing across all indicators. With a price pop at tomorrow's open, the RSI could print a higher high to negate the negative divergence, but, barring any opening bounce, the chart says she is going down and at any time. The MACD histogram is a lost cause for the bull case. Projection is for price to receive a spank down at any time and move lower to reenter the channel. If the bulls do not drive the markets up strongly at the Thursday opening bell, then the broad indexes will likely roll over. Initial downside targets would be 1399, 1394, 1391, 1389, 1385, 1378, 1377, 1375, 1371, 1370, 1369 and 1366. 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.