SPX 2-Hour Chart Overbot Negative Divergence New All-Time Intraday High

The SPX prints a new all-time record intraday high at 1914.46 but the all-time closing high from Tuesday, 5/27/14, at 1911.91, the palindrome, remains in place. The 2-hour has been of interest since late last week waiting for the indicators to place universal negative divergence. Scroll back to the prior 2-hour chart for further study. Price made an equal high over the last two candlesticks and all the indicators are now negatively diverged so price receives an initial spank down late yesterday. Price may bounce as it back kisses the upper blue channel rail at 1908-1910 but the expectation is that price falls back down into the channel as a few more candlesticks print and the negative divergence exerts its force.

The teal dots show how price reverts to the mean each time it becomes overextended to the upside, like now. The channel is very reliable to identify the tops and bottoms (pink dots) so the anticipation is that price moves towards the bottom blue trend line again. May began at 1884 and will print a positive month unless the bulls can remove 26 handles over the next two days. There are three gap fills needed underneath with the first at the strong 1891 support. 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.

Note Added 6:58 AM on 5/30/14: The bulls squeeze out more upside juice. The RSI above was a cheesy negative divergence set up so price ran higher to more clearly place the neggie d, which it has. Negative divergence is in place across all indicators so downside is expected.