SPX Daily Chart Bollinger Bands Megaphone Pattern

The SPX is on tap to spike into the 1440's at the opening bell today. This tags the upper BB at 1445. This is also where the upper trend line occurs. It is also where the highs two weeks ago occurred so an important inflection point is created at 1444-1445.  There is very strong resistance at 1441, then 1444. If 1444 gives way, price will likely test the next very strong resistance level at 1460-1461. Typically, once the outer BB is violated, price will move back to the center BB at a minimum, and usually to the opposite outer BB before reversing again. The chart pattern before Monday's upside orgy was weak and bleak but the timing of the fiscal cliff resolution coincided with price nearing the lower BB helping the upside launch.

Price is above the 20-day MA (which is also the middle BB) at 1422, a very bullish indication. When price prints in the 1440's today, the volume is important since today will test the large volume candle from six days ago on the sell day off the top.  The bulls must bring strong volume today and overtake the volume on the downside to show they got game. Also watch the indicators when the matching price high prints to see if the indicators break out into a long and strong profile, or if the thin neon blue lines hold to create negative divergence. The bulls turned it all around with the fiscal cliff joy. The action this week once the upper BB and upper trend line are tapped will be interesting. Price will either receive a spank down from the mid 1440's, or, punch up thru and close above which would pave the way for a test of 1460-1461. 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.

Note Added 1/2/13 at 7:33 PM:  The SPX blew thru 1444 at the opening bell, tagged 1457, pulled back, but then a late day push higher closed at the highs, at 1462, sitting on top of Keystone's critical 1460-1461 S/R.