Happy May Day... First up then down then up. By the end of the day prices pretty much closed just a tad below even. Another doji and another day of indecision. The ST is still overbought and this heightens the chance for an upward acceleration. The intra-day chart however shows an exit of the overbought range and the bears would need this to sustain itself to the downside and push the ST into another downtrend. Unfortunately, this sideways action have not been good for bulls or bears, and pretty much everyone is aching for markets to move regardless of the direction. Clearly though, the 1880 - 1890 SPX range has been a strong resistance.
Right now the SPX is also forming a head and shoulder type pattern. The daily MACD is at its second negative divergence since March 2014 and anything below the zero line would spell a bearish outlook like in Mid April 2014 and Late Jan. 2014.
MT: DOWN
ST: UP
PA: UP
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