SPX Daily Chart Rising Wedge Overbot Negative Divergence Channels Key Reversal

The daily chart shows the upward-sloping channel in place for the last three months, the black dots show higher highs and higher lows occurring which is bull friendly and verifies the trend. We watched the red rising wedge form days ago with the negative divergence, and key reversal in the blue box, all bearish indications that created the smack down from the top rail of the channel at 1427-ish. Price is moving sideways thru the 1399-1413 channel for the last eight days.

The 20-day MA at 1407.40 will play a key role in the trading action early week and will signal an immediate winner, bull or bear, depending on whether price moves above or below, respectively.  Projection is sideways to sideways down moving forward a few days since RSI, MACD and stochastics are negative; there should be a test of the important 1399 on tap, where the indicators can be rechecked for any positive divergence that may, or may not, develop.  The price move either above 1413, or below 1399, is very important and allows that side to wave a victory flag. 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.