SPX Daily Chart Upward-Sloping Channels Overbot Rising Wedge Negative Divergence

SPX daily chart shows the Fibonacci retracements if the SPX places a top at these levels. The first retracement target is 1295-ish, then the 50% Fib is 1372-ish, then the 62% retracement at 1350-ish.  Of course these retracements are not applicable if the bulls keep pounding higher.  The indicators are negatively diverged over the long term and over all time frames for the stochastics. The central bankers money pumping, however, has caused near term long and strong strength shown by the green lines, so a stutter step move would be in order as the SPX should flatten out and roll over.

The purple channel is an zone of interest moving forward and a strong area of support and resistance for traders. Volume did arrive late week as underperfoming hedge funds held thier nose and bought on the Bernanke fanfare, and more than likely Ma and Pa retail investors ran to the market after hearing all the hooplah on television. The volume did not take out the high volume marking the top back in March, however, so it would be prudent for price to make its way back down to explore the March numbers.

Price exploded well above the upward-sloping black channel over the last two days.  The steeper sloping green channel is in play now as well with price at the top rail right of this channel.  Lots of momo occurred last week that may take a few days to burn off.  Projection is a stutter step move sideways, then down to the channel rails with the purple channel a target as the days and weeks move along.  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.