Friday, May 30, 2014

SPX 2-Hour Chart Upward-Sloping Channel Overbot Negative Divergence

The bulls launch price higher on the thin holiday volume and taking advantage of the lull period until Draghi provides the ECB stimulus on Thursday. A back kiss to the top rail at 1912 support would be prudent. The indicators are all negatively diverged wanting to receive a spank down. Someone needs to tap the SPX on the shoulder and tell it to sit down.

Watch to see if the RSI can make another high to squeeze out more upside price juice, or not. Ditto the MACD line. The way the chart is now, the neggie d should hold firm and down should be the path forward likely targeting 1912-ish support at the top channel trend line where price would either then bounce, or die. The SPX prints another intraday all-time record high for four consecutive days this week now at 1921.30 as the highest print in the SPX in history. Copper turns negative today. RTH is 58.96 well above the 58.59 bull-bear line in the sand (identified by Keybot the Quant algo) so the bulls are using the retail stocks to keep equities elevated. 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 7:09 AM on 5/31/14: The bulls are relentless pounding higher squeezing out 3 more points of upside on Friday. The SPX prints a new all-time intraday high at 1924.03 and new all-time closing high at 1923.57. Firm negative divergence remains across all the indicators so the chart above remains valid and a slap down continues to be expected perhaps after Monday's opening bell. 

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