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

The daily chart shows the SPX traveling up through the safety of the upward-sloping channel. The red liens show the negative divergence in place, rising wedge and overbot stochastics all wanting price to receive a smack down. The green lines show the long and strong momo created with the bull euphoria late last week. Similar to the monthly chart, this behavior usually resolves in a jog move to provide time for the indicators to line up negatively in this short week or two time frame and then roll over. So, on the daily basis, some down-up-down-up action may occur into mid-week with a preference to move to the downside.

The weekly chart posted this morning is firmly set up with negative divergence wanting to see a weak SPX for the weeks forward so it is reasonable to expect the markets to perhaps peak out this week and roll over to the downside. A move to the upper rail at 1625-ish of the channel cannot be ruled out. Projection is for a roll over in price to occur this week with a downside target to the lower rail of the channel at 1575-ish.  Note that this is the same area as the key confluence and gauntlet of support described in the SPX Support, Resistance and Moving Averages missive posted this morning at 1573-1581.  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.