SPX / Bullish Divergence

A wacky week so far, and Friday looks like it's going to be another roller coaster ride as well as we move into the weekend ahead of next Tuesday's Fed announcement.

Two things I wanted to point out on the charts (one for the bulls and one for the bears)

For the bulls, there is some bullish divergence on the MACD as indicated on the charts. This hints that the momentum of the move down is weakening.

For the bears, any bounce up will likely find resistance at the 50MA (the SPX has not been above the 50MA since Since December). Prior to getting past the 50MA it still has the 30MA to hurdle first. It's only spent 4 days in 2008 above the 30MA.

All in all this just shows more evidence of chop and consolidation in this range.

Keep an eye on the Fib levels too as you can see from the green circles that those levels have consistently resisted for the past few months.

The bias continues to be neutral until it cracks below 1275 or above 1390.

SPX Daily Chart: