S&P 500: monthly trend is always bearish

Long term basis: Yearly bearish divergence with our stochastic and MACD => 500 as a first target

On a yearly basis, the status for our MACD is a bearish divergence. Furthermore, our MACD and stochastic are overbought at the same period: a sharp decline is expected. The collapse in progress could amplify. 500 and LY are our next supports.

On a quarterly basis, Bollinger bands spread could increase with a new decline. The bearish dynamic for our 7 quarters moving average is always in progress. A bearish A type crossover is in progress with our 7 / 23 quarters moving averages (in 2002, the crossover was a bearish B type). With a bearish non-crossover for our stochastic a collapse towards LY is expected.

 On a monthly basis; a bearish parallel pattern is in progress as long as MM proves to be a resistance (end of period).

Idea: a yearly bearish divergence is the status for our stochastic and MACD. The correction of the XX century bullish trend is in progress => bear trend for one decade or more.

R = below MM (1050.8);    S = LW (857), 666 (current low), 500, LY (186)

 

Medium term: rise?

On a weekly basis, Bollinger band spread is not minimal. A weak bullish non-crossover is in progress with our 7 / 23 weeks moving averages. As long as our MACD is not overbought (end of a week), the rise in progress could continue.

Idea: towards MW with an overbought status for our MACD and towards LW if MW fails as a support.

R = MM (150.8);    S= MW (971.95), LW (857)

  

Short term: towards LD

On a daily basis, Bollinger bands spread is not minimal. A bearish A / B type crossover could be the status for our 7 / 23 days moving averages. A bearish non-crossover is in progress with our stochastic and MACD. LD will be our next target. As long as LD proves to be a support, a decline is only a technical correction.

Idea: bearish pre-parallel pattern in October.

R = MM (1050.8)        S= LD (1010)

 

Conclusion: as long as MM (1050.8) proves to be a resistance at the close, the rise in progress is only a technical rally in a long term (year (s)) bear market.

 

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