5m SPX – 5 Day Trend Line Resistance (update 1)

There is still validity in the upward TL on the 5m chart.

Today ended showing:

  1. Divergence between the stochastic pullback and the tight consolidation of the market.
  2. S&P stochastics ending the day in a falling wedge pattern.
  3. A gap between the S&P and multi-day resistance TL

These are 3 bullish technical indicators.  Looking for 1185 and up this week in the S&P to unwind some positions before further downside, or until this TL is broken.

Divergence involves a pulling back of the stochastic indicator (at the bottom fullK and fullD pulling back to oversold), and the price level on the chart (holding a consolidation, or moving up).  Click here to show divergences drawn on the chart.

It is always necessary to look at other time frames.  Here’s a look at the daily S&P chart.  The 5m chart has the TL extended to a ray on the right which continues on the daily chart.  We expect a convergence to the ray during this week – timing uncertain.

original post

NOTE: This is only technical analysis.  Reports, news, and other fundamentals should always be considered when making trade decisions.

5m SPX – 5 Day Trend Line Resistance