The above daily SPX diagonal shows a blue trend channel defining price since late April.
The red Bottoms Line of an Ending Diagonal connects the April low and the important October low.
The Oct low is important because it is the only time the index tested its 50 DMA since reclaiming it in late April
The internal blue trend channel is the heart beat of the price action since April.
I connected the February peak with the upper rail of the blue trend channel to produce 2025’s Ending Diagonal.
They converge around the 7.000 region.
Remember 703 (7030) is a corner number (naturally stronger) that squares-out with next week.
It appears 7030 would represent a Throw-Over of both the blue trend channel and the red Ending Diagonal.
A Throw-Over makes sense in the scheme of a long relentless runup.
Climatic action… IF we get the Throw-Over and a quick reversal back below the intersection at 6970 into this synergistically cyclical first half of November, it could mark a major top.
Confirmation would be breakage o the red Diagonal and then the blue channel.
Pulling back the lens to the 2020 Covid low, another divergence stands out.
I connected the October 2022 low the Oct 2023 low and the April 2025 low.
Then I paralleled a line off the January 2022 top.
The top rail (red) ties to the 6900 region.
Notice that a blue Tops Line connecting the initial high following the 2022 low and the series of highs going into the February 2022 peak intersects with this 6900 as well.
We have price and time.
We have divergence: two Hindenburg Omen signals were generated on Wednesday…one on the SPX
The other on the DJIA as breadth collapsed and volatility came out of hibernation on Wednesday.
The collapse of internals accelerated again on Wednesday.
The averages didn’t drop a lot, but the damage was noteworthy.
Net decline totaled 1,125 on the NYSE and an even deeper 1,909 on the NAZ.
Initial support is 90* down at 6837 SPX.
180* down is 6753 which is the open gap and breakout from last Friday.
In other words the SPX is pulling back from a 180 degree rally from Friday’s breakout.
If it wants to satisfy 360 degrees from Friday’s Breakaway Gap that equates to 7086.