Monday, September 28, 2015

SPX S&P 500 2-Hour Chart Positive Divergence Lower Band Violation

President Obama is speaking at the United Nations assembly in New York. Stocks begin the week on a down note. The new price low as compared to last week occurs with the indicators all positively diverged wanting to see a bounce in price. The LOD is 1902.85 thus far now printing 1908. The MACD cross is negative but the line is positively diverged so the cross may reverse in a couple candlesticks time.

The SPX violates the lower standard deviation line (pink) so a move back to the middle band, at a minimum, at 1936 and falling is on the table. The month ends Wednesday and September began at 1972 so keep watching to see if the bulls may want to try and make a run for a positive month.

The full moon was last evening and stocks are usually bullish through the full moon but today starts off weak so far. The quarter and month end, EOQ3 and EOM, respectively, may create window dressing and some stock buoyancy. New money is typically put to work from the last day of the month into the first few days of the new month creating buoyancy in equities. The bulls have the seasonality factors on their side for this week, however, the stock market is typically weak between September OpEx (9/18/15) and mid-October each year.

The SPX would be expected to bounce perhaps after European trading closes. The next couple candlesticks are important. If any of the indicators slip then prices will remain soft for a few more hours. Keystone bot some index longs for a quickie trade expecting price to bounce. The SPX is hanging around at the day's lows as this is typed at 1905 sitting on the lower band at 1905. 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.

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