Stocata S&P 500 Analysis: April 27, 2019.

Last week I wrote: "Another small gap on Friday that needs to be closed. The larger gap of the week before is still open. To close this larger gap the index must fall below the lower side of the rising wedge pattern. That would not only close the gap but also confirm the reversal pattern. The upper side of the wedge resistance was reached with a closing price on Friday. Wave (a) and wave (c) now have about the same length. The stochastic RSI is moving down. Best guess is that price will reverse one of these days. Read my updated comments for the weekly chart and monthly chart for more information regarding the longer term view."

The smaller gap two weeks ago is closed. The larger gap of about 4 weeks ago is still open. The index is making a longer term double top. Price is still within and touching the top side of the rising wedge pattern. There is resistance from the R2-pivot of the current month and we are at the upper side of the volatility channel. Higher tops in price with lower tops in the SRSI indicator form a negative divergence. Most logical to expect now is, a downward reaction, in first instance breaking the low side of the wedge pattern. Read my updated comments for the weekly chart and monthly chart for more information regarding the longer term view.