Quarterly and monthly charts

There are still a full 3 weeks until the quarterly bar closes, and so the shape of these could easily be different - but with that caveat let's take a peek at the USA main indexes. 

Read each index chart for specifics, but key points are:
Quarterly chart RSI divergence most glaring on INDU & VTI
NDX 2000 top level resistance
Previous monthly bar doji bars near top of Bollinger bands; current bar "looks like" engulfing red, bearish but not closed yet
Bull traps for anyone who bought breakout of prior price highs (SPX 2134, INDU 18351, etc)

Monthly close levels of the previous high bars may act as support (SPX 2107, INDU 18132, etc)
Still sharply rising MA (moving averages) on quarterly charts, and decently rising MAs on monthly charts
Perhaps NDX move is a just a shakeout of weak hands before launching above 2000 high

Clearly mettle of people buying new highs and late to summer rally being tested, and I think their late entry will be punished by the market. The monthly chart configuration is looking bad here, and with both FOMC and election risk, with other central banks pulling back on support as recent data has disappointed, I see little reason for big buyers to step in aggressively as they did in June and early July. This means I think the correction will go on a little longer and probably exceed -5% on SPX (so 2085 or lower). Whether or not we cross the -10% I really don't know. 

From the moving average and direction perspective, this has been an epic run. The last touch of the 20MA (orange) and 50MA (purple) was Q4 2011. Recently the 10MA (aqua) has been near enough support. But RSI divergence and a small up bar with a wick are danger signs that will be official if the bar closes like this in a few weeks. 20MA far below at 1792 but rising fast. 

But let's be clear, as good as this has been, a log scale chart makes this much less impressive compared to the 1980s and 1990s. 

I digress. 

Falling under last month's close / current open price of 2171-73, Friday unleashed a cascade of selling. And last month's doji bar with a wick at the top of the Bollinger band with glaring RSI divergence just doesn't look so good. Potential support at the prior high 2134 and the monthly close high 2107. If this zone holds, then it is a healthy test and the uptrend can resume. But a lot of people bought the breakout above 2134 and I think their mettle will be tested and late entry punished by the market. The next MA support zone is currently 2064-70.

Ugh. This RSI divergence has one the one trouble spot in mostly good technicals across indexes and timeframes, and I have mentioned it a few times. Right now this looks to be a huge bull trap for anyone who bought the breakout to new highs. 10MA aqua line support a few times, 1 break and recovery, near test of 20MA earlier this year. 

Ouch! Late buyers caught in bull trap! Although would look much better back above the monthly close high at 18132. Next MA support 17590-17650.

Pro selling at the 2000 highs here. Do not dismiss a major index double top (see SPX 2000 & 2007).

Same level on the monthly chart. Maybe a pause at highs or maybe something larger. Currently engulfing bar from top of Bollinger band does not look good. 

But like the others perhaps more recent monthly close high at 4664 can be support.

Resistance at the quarterly close high, happened to be near YR1. 

Turns out same levels on the monthly chart too.

And since Vanguard has an awful lot of $ under management, let's look at VTI. RSI divergence picture like INDU.

Bull trap! But maybe support at monthly close high just below current level.