Thursday, December 24, 2015

SPX S&P 500 2-Hour Chart

The market week is quickly ending in 20 minutes with the early 1 PM EST closing bell. The CPCE put/call chart predicts a near-term market top so we look to the 2-hour chart for hints on when that will come. The stochastics are topped out, overbot and negatively diverged. The histogram is neggie d. So this will create a retreat in price but the RSI, MACD line and money flow remain long and strong so another 1 to 3 candlesticks are likely needed to roll price over with universal neggie d (about 2 to 6 hours of trading time). Markets are closed until Monday morning.

Thus, a guess would be for stocks to top out Monday or Tuesday morning. The RSI will impact the path ahead watch to see if it becomes overbot. The SPX wants to sneak out more highs and may target that 2072-2074 resistance. At that time, a rising wedge pattern, overbot conditions and universal neggie d may print which would mark the top and begin the spank down.

Interestingly, considering the low put/call ratios are looking for a market top at anytime, will a negative news event occur over the Christmas holiday weekend to start next week's trading on a sour note? 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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