View: content.screencast.com/use.../SPX11014.jpg

$SPX Daily Chart 

SPX has created quite the fascinating chart. The bulls will say the chart is moving from the lower left to the upper right, so more strength is to be expected. From the bearish perspective we can see a few very interesting formations taking place. First, you can see larger rising wedge off the Nov 12' low. Within that wedge is smaller wedge that has developed from the Oct 9, 2013 low to the present. Both formations are generally resolved to the downside. Also of note is the green rising trendline I have shown going through May, Aug, and Sept 13' highs. SPX broke above this line in second half of Oct 13'. Since that break, the trendline was backtested, used as support, and formed a broaded wedge over the past three months. These formations, working together, should be a red flag of a downside reversal. The key levels to watch will be first a break of the small rising wedge at the top of SPX. 2nd, a break of the green rising trendline which has acted as support for SPX of late. 3