SPX S&P 500 Daily Chart Negative Divergence Tight Bands Ready to Squeeze-Out Big Move

The market bears have all systems go for lower stock prices ahead except for one thing; Fed Chair Yellen, Queen of the Doves, speaks from the Jackson Hole Economic Symposium at 10 AM EST Friday morning (3 PM London; 4 PM Frankfurt and Paris; 11 PM Tokyo). Thus, anything can happen. Charts can only price in what is known up to the minute.

The red lines show the rising wedge patterns that are bearish patterns. The indicators are coming off of overbot conditions. The indicators display universal neggie d which wants to create a severe spankdown in price but once again, Yellen may flap her dovish wings and foil the bear's hopes. The MACD cross is bearish.

The brown circles show distribution taking place the smart money handing off shares to the dumb money. The tight pink standard deviation lines remain squeezed in tight. There is likely a very large move coming once price is squeezed out from the tight bands but tight bands do not predict direction only that a 50-handle and more is likely in the days ahead, say through next week, one way or the other.

The SPX slides below the 20-day MA at 2178 another feather in the bear's cap. Price remains elevated above its moving averages requiring a mean reversion lower. If Yellen was not speaking tomorrow, the chart would already be rolling over to the downside. The low CPCE put/call ratio has not been respected as yet; the complacency predicts a market top at hand.

Yellen just picked up her white dove wings from the cleaners and plans to fly around Jackson Hole and drop money from the sky. Can Yellen walk a tightrope tomorrow morning? 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.