Saturday, April 25, 2015
SPX S&P 500 2-Hour Chart Overbot Negative Divergence
The SPX 2-hour chart is overbot with negative divergence (red lines). The MACD line is too close to call (is it flat or sloping higher or sloping lower over the last couple hours?) so the SPX may play around for another 1 to 4 hours before rolling over. The upper standard deviation band is at 2123 so if price does begin the week on the upside at 2118-2124 it is likely creating a very good short opportunity for the near-term. The CPC put/call ratio drops to 0.76 indicating that a market top is at hand (see previous chart). The expectation is for a pull back to occur and it should begin at anytime in the trading hours ahead. As always, the central bankers are the market, and the wild card, so if they decide to goose stocks that will temporarily create more lift before the selling begins. 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.