SPX Daily Chart Rising Wedge Overbot Negative Divergence Tight Bands

The drama continues with the red rising wedge moving ever higher like a French guillotine blade now ratcheted-up into its absolute top position. Price sneaks above the upper trend line yesterday and pulls back to sit on the trend line and plot a bounce or die decision today. The apex of the wedge only has space for a couple more candlesticks (2 days). The red lines show universal negative divergence in play across the multi-week and multi-month time frames, however, the bulls are creating VST long and strong juice (green lines) which wants to see another price high over the coming days. There are only two days remaining this week so the bulls may be able to stretch things out through the holiday into next week.

Price pierced the upper standard deviation band (pink) at 1974 so a move back to the middle band, the 20-day MA at 1950.65, is in play. The bands are squeezing-in setting up a big move. The weekly chart shows the RSI sneaking higher so the bulls are going to try and stretch out the elevated equity markets for a couple weeks longer. This would provide time for a jog move for price that is down, up, down over a two-week period. The projection is that markets are topped out or topping out in the days ahead. The tightening move with the pink bands may hint that an extremely sharp move is about to occur in the coming days. 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.