Wednesday, October 9, 2013

SPX 2-Hour Chart Downward-Sloping Channel

The political talk yesterday sours the market mood. The blue channel remains in play with price now at the lower rails. Note how the indicators remain weak and bleak (red lines) except for the money flow over the last three weeks which is positively diverged. The stochastics are oversold so they would be open to a bounce. RSI is near oversold, but not yet. The indicators hint that a lower low in price is likely required, after any pop occurs, so if it takes from 2 to 4 candlesticks to flesh out, that would be 4 to 8 hours of trading time. Interesting S/R levels include 1669, 1664, 1661, 1657, 1652, 1649, 1647, 1639 and 1627. Projection is a sideways move through 1647-1669. Perhaps this afternoon the chart will set up with positive divergence to allow for a potential quickie long opportunity. 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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