Stock chart patterns and technical analysis (TA) explained simply. Disclaimer: This blog and all its contents are for educational and entertainment purposes only. Do not trade or invest based on any information seen on this blog. Please read Terms of Service. The K E Stone blog sites (Keybot the Quant) are blacklisted by Google, so enjoy the ad-free experience, and only use the Donate button when supporting the sites.
The SPX pulls back last week due to the rising wedge, overbot conditions and negative divergence. The red dots show price above the 20 MA above the 50 above the 200 which begs for a reversion to the mean. Price comes off the top rail of the upward-sloping channel last week. The lower rail is in the 1500-1550 range. There is no reason for price to come back up although the RSI shows a little bit of near-term juice that may create some market lift for the week ahead, or following week. Projection is sideways to sideways down for the weeks and months ahead. 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.
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