Where Goes the SPX 500 ?

There are a multitude views on the subject . Depending on your time frame , the Index will either go Up or Down.

In the short term there is , in my opinion, still some upside before we get a modest correction.

Chart One : Daily SPX 500

This shows that since early July the price action of the Index has a series Ascending Wedges with a major Ascending Channel. The Lower Boundary of the first inner Ascending Wedge was broken to the downside on September 1st. On September 2nd a Spinning Top Morning Star was formed . This candlestick suggested that the next session would be to the upside. The was fulfilled on September 3rd when the Index touched the second Lower Boundary of the larger Ascending Wedge at 992 and then rebounded. to Close @ 1003. This was followed by another upside session on the 4th where the Index closed at 1016.4 .

In the next session, the technical indicators such as RSI, Slow and Fast Stochastics indicate that there will be more upside. This fits with the Chart interpretation where Lower Boundary, now a Resistance Level, will be tested at around 1037. Should that give way then an Inner Wedge Upper Boundary at 1042 will be tested. . If the Bulls are roaring then we could see the uppermost boundary of the Ascending Channel tested. That would take the Index to around 1050 - 1055. If the Channel Boundary holds then there will probably be a reversal and a trip down to test the Lowermost Boundary of the Ascending Wedge at 999 and perhaps down to the Lower Boundary of the Ascending Channel at 982. This scenario would also fit with the Index visiting the Lower Boundary of the Bollinger Band.

In the next post I will discuss what I think will happen when the Index reaches the Lower Boundary of the Ascending Channel at around 982.