SPX: Follow Up of the Short Term EWP
I don't have much to add regarding my short-term scenario of SPX.
Yesterday price action does not suggest that the move off the June 4 low is finished, hence the short-term trend in my opinion remains up.
So once again I show the same daily chart.
Here I highlight the overall appearance of a bearish rising wedge; therefore we cannot rule out one more "last" exhaustion up leg towards the upper converging trend line.
At the moment there are several intermediate time frame options so I have no idea if the approaching top belongs to a larger corrective pattern off the April top (Blue labeling) or if the intermediate up trend off the March 09 low has been taken up after a shallow interruption (Black labeling).
In the following weekly chart we can see that price is approaching a critical resistance zone = 1440 - 1447 where price has to reverse otherwise, on the upside, the there is only "thin air" until a weekly gap at 1478.49.
Yesterday I suggested to monitor closely NDX, since there is 3-days potential bearish candlestick set up. But maybe it is worthless if AAPL is unfolding a Flat, which will result into one more up leg.
So it is undeniable that the short-term price structure could allow more upside, maybe a "blow out" move.
But it remains striking the "impressive" divergence of the last two days between VIX and SPX, which is suggesting a potential higher low.
Which one is going to give up?
I guess we will have the answer tomorrow with the price reaction to the FOMC news at 12:30 (ET usa).