Sunday, October 21, 2018

SPX S&P 500 Weekly Chart

The universal negative divergence, rising wedge pattern, overbot RSI and stochastics and violation of the upper standard deviation band all conspire to create the top and smack; these parameters punch the stock market squarely in the face in the weekly time frame; a neggie d spankdown; an easy top call.

The moving average ribbon is displayed. Back at the January top price was above the 20-wk MA above the 50-wk above the 100 above the 150 above the 200. A mean reversion was needed and it occurred but price only came down to the 50-week. Just think, in the months down the road, price will eventually revert below the 200-week MA.

Price stops at the 50-week MA and wrestles at this key 2747 level. This is also where the key 12-month MA is at which is one of Keystone's Cyclical Market Signals; the cliff. If the 2747 is lost, an Armageddon outcome begins for the stock market for the weeks, months and perhaps several years ahead. Bulls must hold 2747 or they are toast.

The RSI and stochastic slip into bear territory (below 50%0 so keep an eye on them. The indicator are weak and bleak hinting at another lower low required on a weekly basis so a tirp to that lower standard deviation band at 2707 may be on the table on the weekly basis.
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.

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