SPX Weekly Chart

Note how the hanging man and 2 doji candlesticks created the top at the apex of the rising red wedge a week or two ago. This week's action is important since the collapses from rising wedges can be quite dramatic. Price tagged the upper standard deviation band (pink) so a move back to the middle band is expected, at a minimum, the 20-week MA at 1725.88. The 1722 and 1733 levels are very strong support levels so the 1722-1733 is a downside target range. Price has respected the 20-week MA as support for many months, as the chart show, so a failure of the 20-week MA would usher in the more extensive market correction that no one expects. The blue lines show the 1722 and 1745 support levels.

The volume is not convincing for the bears, however, it is thinner holiday trading, which will be even more thin with each day forward into the end of the year. We watched the negative divergence develop over the last month or so which caused the smack down and the indicators show that there is no reason for price to want to come up again. Projection is sideways to sideways lower to the 1722-1745 support zone as the days and weeks play out. 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.