Friday, February 28, 2014

SPX 2-Hour Chart Fibonacci Retracements Overbot Rising Wedge Negative Divergence

The 2-hour receives a couple of negative divergence smack downs over the last two weeks but the bulls always bounce back. Price is softening this afternoon but a couple or few candlesticks may be needed to burn off the near-term juice from money flow. The red rising wedge would be expected to fail moving forward. If price tops today at these 1870-ish highs, the 32% Fib retracement is 1818.

The brown squares show the debt ceiling resolution rally in February, which turns out to be a very strong month when typically it is one of the weakest stock months, and also the Yellen rally that started 2/11/14 after the testimony before the House Banking Committee. The Senate testimony was yesterday and Yellen hit more home runs receiving soft ball pitches and knocking one after another over the fence. The senators had no will to beat up on such a nice matronly lady that looks like she just baked them a fresh apple pie. The Yellen rallies are just like the Bernanke rallies, about 30 SPX handles. The 2/11/14 rally ran from 1800 to 1830 and this weeks rally is 1840 to 1870.

The bottom red trend line is 1855-ish, so maybe some of that long and strong money flow juice gooses price a few handles higher, and then a roll over would be anticipated. The collapse out of the red rising wedge would be expected to send price towards 1818. Watch the lower red trend line and also the RSI 50% level that has been holding. If that fails, then price movement lower would be more sustainable. 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.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.