I wanted to share something quite interesting by way of our Layered Charts feature. Here is the past half year of the S&P 500 cash index. Please note how recent highs are higher than those in mid-December.
Unequals
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Possible High Being Made
SPX went down a little further than was ideal, and then rallied very hard yesterday, so the topping pattern scenario is still on track.
The break below the daily middle band confirmed on Wednesday and SPX broke back hard over the middle band again yesterday. A close over 4115 again today will confirm the break back above. There is the option of a hard rejection back below that today, which would be unusual on a Friday, but definitely possible as today is the last day of April, and the stats for that lean 67% bearish.
SPX daily BBs chart:
Topping Step One Completed
I was talking on Friday and Monday about the likely topping process now in progress on SPX here, and the possibility that SPX would head down into the possible H&S neckline in the 4070 area, supported by the daily RSI 5 sell signal that had fixed. That target was reached yesterday, and the daily RSI 5 sell signal made and exceeded the target at the 30 level on the daily RSI 5.
SPX daily chart:
Broken Wedges
As I was writing on Friday, SPX is testing major double resistance at the month middle band and a key trendline from the 2009 low. With a daily RSI 5 sell signal fixed on SPX, at least a decent retracement here looks likely, and that may develop into a decline into a new bear market low under 3491.58.
SPX monthly chart:
VIX Cracks Below Trendline
This is just getting sad……………
