The black lines show the expansion, megaphone-style pattern in play with price attacking the top rail currently. Price is above the 50-day MA at 1416.86 which is a feather in the bull's cap. The red lines show the triple top and negative divergence smack down. The H&S has a head at 1475-ish, neck at 1430, so the target is 1380-ish which was achieved so the pattern was satisfied. The 1433 is uber strong and important overhead resistance.
The price move over the last month off the 1350-ish bottom is the fiscal cliff and FOMC QE4 rally in progress, now already about 70 handles off the bottom, over 5%. Note the red rising wedge now in play for the last couple weeks. The apex hits the top rail of the megaphone. Yesterday's candle is a doji which indicates a trend change as a strong possibility but today would have to show follow-thru to the downside. The indicators are all negatively diverged and agreeable to a spank down from here but the MACD line would like to see another matching or higher high in price after a pull back occurs. This behavior may set the stage going into tomorrow afternoon and the Fed's rate decision announcement.
The last few days price ticks up each day higher, but volume participation steadily ticks lower, not a ringing endorsement of bullish strength, however, crack cocaine from the Fed would bring in strong volume. The selling volume rules ever since the September top. The price levels from the November sell off show high volume, so price came up to test this volume and the bulls have not been able to show that they have oomph. Watch the price move in relation to the 50-day MA. Projection based on the chart is a roll over in price from these levels and a move lower, however, if the Fed fires the money bazooka, a strong upward spurt would occur, that is where 1433 would play a pivotal roll. 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.
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