SPX Weekly Chart Upper Band Violation Price Extended Overbot Negative Divergence Developing

The standard deviation bands (pink) squeezed in during October which created the spurt in pricing from 1820 to 2075 a historic recovery rally. Price violated the upper band so a move back down to the middle band at 1990 and rising is on the table as well as the lower band at 1887. The red lines show negative divergence in place that want to see weakness in price but the histogram and the MACD line and RSI have some additional bull juice after any pull back would occur in this weekly time frame. Price should either jog here for a week or two then begin trending lower, or, pull back only for a week or so and come back up for another look at the current highs then roll over to the down side. In other words, topping action over the next couple weeks.

The stochastics are overbot wanting a move lower this week then the following week when Fed Chair Yellen speaks price may recover then roll over. As always, if any central banker announces stimulus the game immediately changes and markets are goosed higher and then need to reestablish the technicals after the pump higher. Like last week when the SPX started breaking down on Monday but the PBOC goosed the markets with news of more triple R cuts, then ECB President Draghi goosed the markets on Thursday afternoon in the States and on Friday for Europe promising to deliver the 'QE sovereign bond-buying program in January'. 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.