SPX 2-Hour Chart Bull Flag

The hourly and minute charts are rolling over with negative divergence. The 1-hour, 30-minute and 15-minute charts are all content with the SPX heading lower for the hours ahead. The 2-hour, however, shows a big thrust in money flow that may want to see another price high after any pull back occurs in this hourly time frame. The stochastics are overbot and RSI was overbot at 70+ yesterday to end a touch under. The money flow positivity may allow the broad indexes to maintain just enough oomph to float along sideways into the FOMC mInutes this afternoon. If the other charts listed above have their way, they want price to head lower right now and for the hours ahead.

The blue bull flag is in play. Using both the 1560 and 1565 bottoms, the target area is 1665-1670 which happens to encompass the all-time closing high at 1669 as well as very strong resistance at 1666. So the door has to remain open for a test of 1666-ish, especially if price moves up through the 1652-1653 resistance. SPX S/R is 1649-1650, 1652-1653, 1666 and 1669. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

Note Added 7/10/13 at 6:52 AM: Chairman Bernanke is pumping the stock market after his speech last evening so the SPX is headed upwards to complete the bull flag pattern.