SPX 2-Hour Chart Inverted H&S

Here is the 2-hour with the updated inverted head and shoulders (H&S) pattern. The SPX went sideways last week then broke out to the upside. Thus, it has two right shoulders but no one is perfect. The price action allows two solid neck line levels to be drawn in the 1905-1915 range. The head of the H&S is 1825. Thus, calculating two top side targets for the inverted H&S is 1985 (1905+80) and 2005 (1915+90), call it the 1985-2005 target zone and this is now in play since price has broke up through the 1905-1915 neck line. There are a few gaps that need filled up top.

The histogram is negatively diverged, the stochastics are overbot and price has severely violated the upper standard deviation band, so these three indicators conspire and want to create a pull back in price. However, the RSI, MACD and money flow remain long and strong and will want higher highs in price after any pullback in this 2-hour time frame.

The arrows show the tight squeeze on the standard deviation lines that popped price skyward. Price has violated the upper band so a move back to the middle  band at 1901 and rising is on the table going forward. The middle band will move up into the 1905-1915 neckline area so this zone should be back kissed in the days ahead where price will decide if it truly wants to go higher, or not. The chart is favorable to the bulls but the choppy erratic action will likely continue due to elevated volatility. 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.