SPX Weekly Chart Overbot Negative Divergence Doji Price Extended

The bears have the weekly chart on a silver platter. The prior top in July was an easy call based on neggie d and now the chart is set up again favorably for bears. The blue and red rising wedges, overbot stochastics and universal negative divergence across all indicators want to see a spank down and lower prices ahead. Price is extended well above the moving averages requiring a mean reversion lower. The candlestick from last week is a doji indicating that a trend change is on tap, however, the SPX will need to sell off and print a negative week next week to verify the trend change.

The SPX prints five consecutive up weeks. Note how the volume continues to trail lower for each successive week with lower and lower participation and none of the up week volume comes close to the selling volume six weeks ago. It would be prudent for price to visit the range of that large sell candle at 1910-1980 to see if the bulls can print a larger volume candle to prove the upside is real, or not.

The MACD performs a bull cross by a hair but it is bullish nonetheless. Therefore, if the bears are going to rock and roll they need to push lower from the get-go on Monday morning and not hesitate. If the bulls manage to squeeze out more upside with the SPX moving above 2011, the top may not occur until 2025-2035. The bears have it on a silver platter and only need to get the ball rolling down hill since the negative divergence will begin smacking price strongly lower. However, the bears have to eat their Wheaties and show up ready to fight on Monday morning and prove they want it. 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.