Basically, there's a wedge in SPX (white lines) that likely will take the path of one of the 2 green arrows (Chart 1). More upside is suggested in SPX, but there are also bearish divergences appearing (see both charts 1 and 2).
Notice last Wed and Thurs. A lower high was put in, followed by decline. This is what the first green arrow depicts. However, it's also possible for prices to break higher, then decline.
Charts, for now, suggest an eventual decline to first yellow channel support line, then a break of that for a test of 1085. Also suggests that 1085 will break and put in a lower low.
Notice that from 11/4 to 11/10 (chart 2), prices increased, RSI sloped up, MACD sloped down. MACD and RSI not in agreement then (first RSI trendline). Subsequently, prices increased more, and both MACD and RSI sloped down, creating a 3x divergence. These are hourly divergences, weaker than a daily divergence.
1) Chart from Nov. 11 till present (zoomed in)
2) Chart since November 3, till present. (zoomed out)
* ChristopherStockGuy is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. For details, see the post from SATURDAY, AUGUST 15, 2009 titled "Disclaimer".
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