Tuesday, November 26, 2013
SPX 2-Hour Chart Overbot Rising Wedge Negative Divergence
The 2-hour is rolling over to the downside receiving negative divergence smack downs (red arrows). Early last week, with the first spank down, the histogram remained long and strong and wanted to see another price high, so price obliged and came up for another high. The two top prints are lofty. The negative divergence is in place across all indicators and for both tops, creating both spank downs. The RSI and ROC are now weak and bleak wanting lower lows. Stochastics have not even dropped from overbot levels yet, it will have a long way down to move. Price is at the top rail of the blue channel, an ideal place to move back to the lower channel rail. The rising wedge also peaks at this afternoon's top. It looks good for the bear's, but if Chairman Bernanke shows up on the floor of the NYSE tomorrow and starts passing around envelopes with easy money inside, of course this juice will help maintain price buoyancy. The expectation is for a move to the lower channel rail at 1788-1794. 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.