SPX Monthly Chart Rising Wedge Negative Divergence Hanging Man Candlestick

The month of April logs another up month for the bull rally. The thrust higher over the last three months is mainly due to the BOJ easing. The yen has collapsed providing rocket fuel for U.S. equities, especially money running in to fuel the dividend stock bubble, as well as helping calm Europe through bond-buying. The red lines show negative divergence across the multi-year and month time frames, however, the bullish momentum is clearly evident with the long and strong profile green lines.  This behavior typically resolves as a down-up-down jog move going forward. The main question will be how far down is the initial down leg?  Note the hanging man candlestick printed for April which typically indicates a trend change. A doji candlestick is the same idea and that created the October 2007 top. The hanging man and doji's need to see follow through to the downside to confirm the trend change, so, at the end of the month the answer will be provided. 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.