SPX 2-Hour Chart Rising Wedge Negative Divergence
The 2-hour chart shows the June bottom and pink bull flag that targeted 1670-1675, which was achieved to satisfy the pattern. We have watched the negative divergence over the last week. The red arrows show the peaks, which are easy enough to forecast, but the Fed's easy money keeps pumping markets higher not allowing any corrections to occur. The red lines clearly show negative divergence that kicked in with a spank down after the high print near 1699 yesterday. The RSI, MACD and stochastics show a weak and bleak posture with lower lows printing as compared to the middle of last week but price remains elevated. This behavior should act as a negative weight on price. Yesterday, the SPX was extended, just like last week, with price above the 20 MA above the 50 MA above the 200 MA, typically indicating tops.
The 1672 support has played a key role over the last couple weeks and may serve as a neck line for an H&S moving forward. A head at 1700-ish and neck at 1670-ish would target 1640-ish. Projection is sideways to sideways lower moving forward. 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.
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V.
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speculation about a new round of chinese stimulus after weak overnight China PMI number!
GS guy
On the weaker China PMI, copper dropped overnight, then Germany and the Euro zone as a whole squeeze out a hair above 50 for their PMI's, expansion, so the euro jumps higher, dollar lower, copper turns positive. Then the article highlighted adds fuel to the fire with copper running strongly higher today. Higher copper supplies bull fuel for equities, the bulls will likely run higher and higher above the JJC 39.21 line in the sand, so that will allow bulls to maintain market elevation. China is like all other countries, when push comes to shove, they will pump the markets just like the Fed, BOJ, BOE, ECB and many other nations. The race to debase continues with everyone trying to weaken their currency faster than the other guy.
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V.