Saturday, December 27, 2014

SPX 2-Hour Chart Overbot Rising Wedge Negative Divergence Price Extended

Here is an update for the 2-hour chart that has been dishing out drama over the last day or so. The RSI has not reached overbot territory but is in negative divergence moving flat as price makes new highs. In other words, the bulls do not have the strength to pop the RSI higher to the 70 overbot level, at least not yet, so the red lines display universal neggie d and a spank down in price is needed now. The pink dots show price extended above the moving averages also needing a mean reversion. The money flow is starting to print lower lows wanting to drag price lower. The MACD lines just performed a negative bearish cross.

The strongest S/R in this 100-point range is 2093, 2089, 2075-2076, 2067, 2061, 2040, 2032 and 2002-2003. The 20-day MA is 2051.58 and rising and needs back tested. The SPX began December at 2067 so there may be price excitement on tap at this level as the year closes out. The projection is down in this 2-hour time frame as long as the RSI does not print higher. The 2075-2076 support is a reasonable initial downside target. 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.