SPX S&P 500 Daily Chart

The SPX comes up for a double top now at the same price as mid-September taking back over one-half of the August waterfall crash blue circles. Since price is at matching or higher highs than one month ago, a comparison of the indicators can be performed. The green lines are long and strong and the red line for the money flow is weak and bleak. Thus, the overbot stochastics and money flow neggie d want price to drop and pull back, which gels together with the previous analysis for the 2-hour chart, however, in this daily time frame, the long and strong indicators want price to come back up for another higher high after any pull back.

Price has not yet violated the upper pink standard deviation band so the 2032 upper band remains an upside target going forward and the long and strong indicators want to see it.

So, mixing the technical analysis together for the daily chart above and the previous 2-hour chart, and sprinkling some magical dust on the charts, suggest that price will peak on Monday, then sell off perhaps late Monday into Tuesday perhaps Wednesday and then recover in honor of the daily chart above and likely print higher highs in the middle or back half of next week. With this the set-up, the bank earnings will likely match or exceed forecasts.

The purple line at 2037-ish is an upside target for late next week and bears will want to hold this price resistance, otherwise, the SPX will want to head back to 2080 (purple lines).

The new moon occurs for this month on Monday evening at 8 PM EST and seasonality-wise, stocks are typically weak moving through the new moon. Next week is OpEx week so a Tuesday low typically leads to a Wednesday high. Both of these seasonality factors jive with the forecast above; say a peak in stocks Monday morning, then sell off into sometime Tuesday but perhaps by Wednesday afternoon the SPX will be back above 2020 and then likely finish the week testing and teasing the 2030-2040 range.

Of course, any news event, bullish or bearish, will immediately impact markets and the charts would have to readjust for that event. 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.