SPX 5-Minute Chart Inverted H&S

The 5-minute is exhibiting an inverse head and shoulders (thick green lines) that will make bulls happy. The head at 1861 and neckline at 1876 is 15 difference so the breakout above 1876 should extend to 1891 which just so happens to be the very strong overhead resistance. The red lines show negative divergence but the green lines show some continuing long and strong juice. Price will want to back kiss the neck line so a touch of 1876 should be on tap for some point forward.

This is a very short term chart. The hourly and minute charts placed the bottom today very quickly after the previous 30-minute chart was posted. The indicators on the 2-hour, 1-hour and 30-minute charts now prefer to see some further upside which would boost the possibility of the 1891 H&S target occurring on Thursday perhaps Friday. To give the bears something to chew on, a failure of the lower red trend line at 1875-ish would light the path lower. If bulls win the day with Draghi providing bull juice, the red rising wedge may play out for Thursday into Friday (the red rising wedge would top price out at the strong 1891 resistance). 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 8:10 AM on 5/9/14: The SPX continues higher yesterday and prints a HOD above 1889 which is very close to the inverted H&S target at 1889-1891 to satisfy both the inverted H&S and rising wedge patterns, close enough for government work, then price leaks lower back down to 1876.