SPX 2-Hour Chart Rising Wedge

The late-day push higher helps continue the bull case. The 1-hour chart is universally negatively diverged across all indicators, ditto the 30-minute chart, which are agreeable to see softness in price to begin the day, however, the 2-hour chart shows long and strong behavior with the MACD line and money flow. The RSI is not yet overbot either, so these three parameters provide the bulls some further juice if a pull back occurs early today. The daily chart gapped-up from 1710 to 1720 and 1722 so there is no clear S/R in this area. Using the prior candlestick prints in this 2-hour time frame, the 1713 and 1715 levels serve as resistance. Thus, the key levels are 1722, 1720, 1715, 1713, 1710, 1708 and 1706. Keep an eye on 1713 and 1715 today.

The red rising wedge, and negative divergence with the RSI, histogram and stochastics, want to see a spank down early in the day today but, as mentioned, price will likely want to float up for matching and higher highs again. As soon as all the indicators agree with negative divergence, which will likely be from 1 to 3 candlesticks, about 2 to 6 hours of trading time, price should roll over to the downside. The political clowns will meet at 11 AM EST so we should know if a deal is reached on the Senate side by lunchtime. This will lead to the House announcing if it is in agreement with the solution, or not, after lunch time. Thus, markets may prefer to stagger sideways into noon time to see how the political drama plays out. Simply following the chart and ignoring the political theatrics, price would be expected to oscillate between 1706 and 1715 for today then roll over to the downside either late today or tomorrow. Of course, if the politicians provide shiny ponies for everyone to ride today, price will likely explode to 1722 and the RSI will likely jump into the overbot territory. Since the chart is at or near overbot levels already, the additional price spurt would be expected to peter out and roll over, only from a higher level such as 1720-1730. 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.