SPX S&P 500 Weekly Chart; Overbot; Rising Wedge; Negative Divergence; Upper Band Violation; Price Extended

The SPX weekly chart is agreeable to downside ahead. The rising wedge pattern remains ominous hanging over the stock market like the sword of Damocles. The collapses from rising wedges can be quite dramatic. Price is testing the upper trend line. The RSI and stochastics are overbot agreeable to a pull back. The red lines for the indicators show the neggie d in play that wants to spank price lower. 

Price has tagged the upper standard deviation band at 2478 so a move back to the middle band at 2399 is on the table as well as the lower band at 2320. The lower number could easily print if price finally collapses from the ominous and dangerous rising wedge. If the rising wedge plays out as most do, a price drop to the 200-week down at 2060 would easily be on the table in the months ahead.

Note the pitiful volume last week. Stocks may be printing new highs but no one is excited about it. The long term buy and hold crowd are hanging on to their stocks and not selling but at the same time the buyers are thinning out. The expectation is for a topping out at anytime in this weekly time frame and then several weeks of lower prices ahead. August and September are typically seasonally weak months for the stock market. 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.