SPX Weekly Chart Upward-Sloping Channel Rising Wedges

The two-year upward-sloping channel remains in play. The dark blue lines show rising wedge behavior with price leaping up and out during the April upside orgy. The SPX now retreats and sits on the upper blue trend line ready to make a decision, either return into the rising wedge, or, bounce higher to print at the upper channel trend line at 1680-ish again. The red rising wedge, overbot conditions and negative divergence created the late May-June spank down. The indicators remain weak and bleak wanting to see lower lows for price moving forward, even if a bounce occurs in the near term.

The pink circle shows that the MACD line is about to stab down through the red smoothing line which signals bearish markets ahead. This signal led to the 2011 weakness resulting in the August 2011 waterfall crash, the May 2012 sell off, the October 2012 sell off, and, now? Watch this closely to see if the bulls can stick-save the markets and stop the MACD cross, or not. The brown lines show interesting key S/R levels at 1550, 1597-1600, 1626-1627, 1649-1650 and 1669. 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.