SPX Weekly Chart Overbot Negative Divergence M Top Pattern

SPX weekly chart shows negative divergence in place over the last six months, price peak to price peak, which points to a spank down needed on this weekly basis. Note the negative divergence that marked the 2011 high.  In 2011, prices peaked with the head and shoulders (H&S) pattern shown by the thick blue lines. The action this year is setting up an M Top pattern with the final leg of the M perhaps now on tap.  The red lines for the indicators are all negative indications for price; the red circles show where the indicators want to see price come down in the future to retest these levels at 1275, 1125 and/or 1075. The thin lines show the upward-sloping channel in place.  Projection is down from here. Watch the 20-week and 50-week MA cross which would verify continued market trouble moving forward. The 20 is above the 50 now which favors the bulls and verifies the upside action. 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.