S&P 500 Index weakens further to approach 50% retracement and rising wedge support area

S&P 500 Index

• The Index tested the long-term bull channel (from March 2009 low)  resistance before consolidating (monthly chart) while the monthly indicators remain in the overbought territory;
• The current pullback threatens the rising wedge support (from June 2013 low) near the 1900 area (weekly chart); Weekly bearish MACD cross points lower;
• The daily chart shows that the rising wedge breakdown in July and the break below the 50 day moving average have accelerated the correction towards the 1902.17/1902.87 (50% retracement of 1814.36/1991.39 rise) support zone. Below lies the rising wedge support (purple line on the daily chart) and the 61.8% retracement at 1881.99.
• On the upside, reclaiming 1942.92 is needed to stabilize. 

Daily chart

Weekly chart

Monthly chart