SPX S&P 500 Daily Chart; Expansion Patterns; Overbot; Negative Divergence Developing

The SPX daily chart displays a couple of expansion, or megaphone patterns. Price tags the top purple trend line for the one expansion pattern while a much higher target remains if the SPX seeks the upper trend blue trend line. The histogram and stochastics are neggie d and want to see a pull back, which occurs yesterday, but the RSI, MACD line and money flow are long and strong wanting to see higher highs in price. Thus, you have to leave the door open that price will come back up in the days ahead to print another matching or higher high. At that time, if the indicators roll over with negative divergence, the top would be in on the daily  basis.

Marrying the above chart with the prior 2-hour chart, stocks may be weak in the nearer term, say today and tomorrow, on that 2-hour basis, but the daily influence above may come back into play afterward to lift price. The 2205 and 2194 are key S/R levels. Bulls win above 2205 and bears win under 2194. Since November was a huge up month, typically stocks are weak to end the month. The Jobs Report on Friday will create market turmoil as well as the Italian referendum on Sunday.

The chart hints at a day or two of softness then a recovery higher again. At that time watch the RSI, MACD and money flow indicators to see if they form neggie d. 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.