Wednesday, February 4, 2015

SPX 2-Hour Chart Sideways Channel

The choppy erratic sideways action continues this year through 1988-2067. The thick purple line shows the erratic price action that moves a total of over 500 points thus far this year; the SPX has covered over 25% of its 2000-point range so far in 2015!!

Key S/R is 2067, 2061, 2046, 2040, 2038, 2032, 2018-2019, 2011, 2002-2003, 1998 and 1988. The 50-day MA is 2044 where bulls win above and bears win below. Price begins Wednesday at 2050. The 2-hour chart indicators remain long and strong (green lines) sans the stochastics that are overbot and negatively diverged. Thus, the stoch's desire an intial spank down in price (S&P futures are soft) but the other indicators will want price to come back up for a higher high after the pull back occurs. Price will not roll over until all the indicators turn neggie d like the stochastics.

Since the 50-day MA at 2044 is a key support level, price may come down to here and bounce. A couple more candlesticks are needed (2 to 4 hours) to get a better feel for the path ahead. The 2061 is in play since price is above the 2046 level. Bears need the SPX under 2044-2046 pronto or they are in trouble.  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 Thursday evening, 2/5/15: The bulls move higher to the 2061 resistance and punch up through so the 2067 is in play. The MACD line and RSI remain sloping higher on the 2-hour chart, long and strong, albeit slightly higher, so one to three candlesticks will be needed before negative divergence can form for all indicators; 2 to 6 hours of trading time, so  a potential near-term top is in play for stocks tomorrow. The Monthly Jobs Report is released at 8:30 AM Friday morning and futures will react violently one way or the other. 

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