SPX S&P 500 Daily Chart Lower Band Violation

The pink arrows show tight squeeze moves at hand and in both mid-August and a few days ago the move in price is lower. The lower band is violated so a move back to the middle band at 1945.62, also the 20-day MA, and dropping is in play. Note how 4 days ago price tapped the lower band, then 3 days ago tapped the middle band, now it is back down to violating the lower band.

The thin green lines show positive slopes for all the indicators but it is not positive divergence; price needs to be lower than the August 1867 low for official possie d to print. The market bulls would have been better off for price to simply print at 1860-1867 since the chart above would point toward a relief rally with positive divergence. Currently the chart is in limbo; tomorrow is a key day.

The stochastics are oversold and need to see a bounce in price. The momo over the last few days, however, is downside momentum. The CPC and CPCE put/call ratios signal a bottom on tap at anytime. The expectation is that a relief rally is near. If price violates the 1867 level the chart will likely display positive divergence which would signal a relief rally. 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.