The SPX Parabolic SAR has flipped downward. Previous instances where this has occurred has provided a strong signal of an significant decline in prices. The last time this occurred was in 2008.
Currently the Monthly PSAR is located at 1220, which coincides with the 50 Month Moving Average. That may provide a powerful obstruction to higher prices and signal distribution.
HOWEVER, this doesn't mean that the index won't make an attempt to bust through 1220. Should it do so, the PSAR will flip upward, at around the 200 Month MA.
One thing is clear, the SPX needs to maintain the 200 Month MA, or it's going to get VERY interesting.
And here's a bonus chart.. AAPL is knocking it's head on its Weekly PSAR. It truly needs to "flip" this if it's going to achieve new highs. Currently that "flip" point appears to be $267/share.
Also note that once they do manage to flip these SARs, we'll often see a period of consolidation to the middle of the Bollinger Band channel (the black dotted line).
Recall from a previous post that I'm watching AAPL very closely because it's the now the largest Nasdaq stock out there, having surpassed MSFT in market cap. MSFT was the darling of the markets in 2000 and when it's stock declined, it signaled the end of the Internet Bubble, which also formed the left shoulder of this 10 year Head and Shoulders formation we've been putting in place. So now I opine that AAPL represents the one stock that will indicate when the right shoulder of that Head and Shoulders has been put in place. No new high and we could quickly see a sell-off to far lower prices.
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