SPX S&P 500 Daily Chart; Expansion (Megaphone) Pattern; Overbot; Rising Wedge; Negative Divergence Developing

The SPX 2-hour chart receives the neggie d spankdown for that hourly time frame. The pullback over the last couple days is also created by the negative divergence with the histogram, stochastics and money flow indicators on the daily chart above. However, the RSI, MACD line and CCI are long and strong wanting to see another higher high with price in the daily time frame. S&P 500 futures are up +19 about four hours before the opening bell for the regular Friday trading session. That would place the SPX at 2661 after the opening bell.

When/if price comes up for the matching high of four days ago, you can confirm the near-term top on this daily chart when the RSI, MACD line and CCI turn neggie d. It is likely over the next 1 to 3 days. The low CPC and CPCE put/calls did not move excessively higher as yet so there is plenty of room for more stock market selling. Ditto the NYMO that only comes slightly down off its record highs.

Price may want to tag the upper trend line of that expansion, or megaphone pattern, again. The megaphone eventually leads down to the ominous 2100-ish level should it decide to play out. Investors will be screaming bloody murder. The purple box shows the pink 150-day MA sloping negatively which indicates that the stock market remains in a cyclical bear market pattern. The daily chart will top out over the coming days as soon as the indicators all show negative divergence. The collapses from rising wedges (red) can be quite dramatic. 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.