SPX Daily Chart Rising Wedge

As the previous daily chart highlighted, price has no reason to move higher since the red lines show universal negative divergence across all indicators creating the spank down last Tuesday. The negative MACD cross remains in play (red circle). Watch the skinny short green line for price at the all-time closing high at 1962.87, call it 1963. Watch the skinny maroon lines in the right margin for the indicators. If price moves above 1963 and closes above, the chart will remain negatively diverged and bearish as long as the indicators stay below the maroon lines. Thus, the chart is bear-favorable.

Price tested the 20-day MA at 1946.43 but more respect should be shown so more touches would be anticipated. June began at 1923 so it looks like the bulls will log five consecutive up months juiced by the Fed's easy money heroin. The higher volume days are due to the OpEx on Friday, 6/20/14, and last Friday's Russell rebalancing, 6/27/14. The largest volume days, where price may migrate to see who truly has the stronger volume hand, are in that sideways congestion zone at 1840-1880, so price likely has to move there so a decision is made concerning who will be the winner to end the year.

This week is shortened to four-days of trading closed on Friday due to the Independence Day July 4th holiday. Markets are typically bullish the two days in front of the three-day holiday weekend and markets are also typically bullish for the start of a new month, especially a new quarter, Q3, and the second half of the year. Every single check mark exists in the bull column with the bears simply showing up each day to get slapped around. If it is any consolidation to the bears, the markets may now have no where to go except down.

The projection remains the same as the previous daily chart analysis. The top is in or will be in during the coming days and a dramatic collapse of from 80 to 150 SPX handles is expected from the rising wedge. 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.