SPX Daily Chart Tight Bands Signal Big Move Imminent

The drama with the tight standard deviation bands (pink lines) continues. A large move will be squeezed out at any time. It is surprising that the markets have stuttered sideways into Thursday this week without yet choosing a direction. The pink arrows show how the bands continue to tighten. The brown rectangle highlights the April fractal. Price is playing out the same way currently and today we are exactly at the inflection point. Note that in April there was a fake-out move to the downside and intraday the SPX fell to1540, -20 points intraday, only to rocket launch from the lower band to 1698 in 4 days, almost +60 points as the tight bands squeezed out an up move. The CPCE chart posted previously hints at market downside today but that may only set up a similar situation as April.

The maroon lines show the negative divergence smack down occurring and the red lines show weak and bleak indicators wanting to see lower lows for price even if a bounce occurs. Watch the 20-day MA (middle band) at 1693.21. Bears are in good shape under 1693 but bulls will be making a run higher above 1693. The big squeeze move is at the doorstep ready to begin today or tomorrow. Watch the RSI 50% level. Projection is for lower prices for the SPX in the weeks ahead even if the bands squeeze out the upside move for the near-term. 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.