SPX S&P 500 Monthly Chart; Overbot; Rising Wedge; Negative Divergence; Upper Band Violation

The SPX monthly chart saga continues. Remember, all eyes are on the purple circle since that tells you when THE top is in for the stock market. The bears were in good shape a couple weeks ago with the MACD line unable to create a higher high, however, the MACD line is now poking out a higher high. This will create further upside juice for price if it can be maintained until the final monthly print is placed in concrete on Friday, 9/28/18, five trading days away, the end-of-month (EOM) and end-of-third quarter (EOQ3).

The red lines show the indicators all in negative divergence and out of gas except for the sliver of strength showing in the MACD. The S&P 500 will need to pull back due to the neggie d but if the MACD line continues sloping higher, price will want to come back up say in October-November. The ADX line remains robust and continues to indicate a strong trend higher. Bears will need to see that ADX curl over to the downside. The upper band has been violated for a couple years and price needs to show respect to at least the middle band at 2610 and rising.

The next five days are critical. If stocks sell off in the week ahead, and that MACD line drops before the month-end prints, then THE top in the stock market will remain as now. Otherwise, if the MACD shows strength, stocks will likely top out in October-November. Simply watch the purple circle; it tells you everything you need to know. If you are a young person, stay away from the stock market on the long side. 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.