SPX Weekly Chart Rising Wedge Negative Divergence

The SPX weekly chart displays a rising wedge (bearish) and has now punched out a higher high than September's high. The red lines clearly show the negative divergence in place since September. Even though price makes a new high the indicators want to see a spank down. The RSi is flat over the last two weeks which is a negative divergence as well since price moved higher.  Note that the MACD line and stochastics have some VST momo and may be able to eek out a few more handles of upside.

Price is moving up on much lower volume these days and a negative divergence smack down may send the SPX lower to test the 1410-1450 zone which represents the mid-December higher-volume week. In the November sell-off note how volume did not exceed the prior higher volume so the bears did not have a lot of downside juice. This is due to the overwhelming bullishness in the markets right now, trader's refuse to believe that the markets can go down so in the November sell off, the dips were being bot.  The buying volume was greater in December leading to the higher prices now, however, the volume enthusiasm is greatly diminished. This sets up a potential move to 1410-1450 to see what the volume says for the path forward. Last weeks' candle is a hanging man which indicates a trend change and this would be either verified with follow-thru, or not, this week.

Projection is for a spank down in price to occur at any time, although the door is open to a sharp move back up to the current highs again, at which time the stochastics would be overbot and a more substantial roll over could occur. Thus, either extended down begins at anytime, or, a short-lived down move right now, then sharp back upfor more play time in 1460-1480, then roll over. 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.