SPX S&P 500 2-Hour Chart Sideways Symmetrical Triangle

The 2-hour chart has provided some interesting entertainment over the last couple weeks. The red arrows show expected negative divergence spank downs which occur but the bears cannot gain downside traction. This is due to the central bankers pumping stocks and the buoyancy associated with a three-day Easter holiday. The  blue circle shows ECB President Draghi pumping the stock market higher and the purple circle shows Fed Chair Yellen pumping stocks higher. Then the SPX stumbles through a tight sideways range on low holiday volume. 

By the looks of the brown sideways symmetrical triangle, however, tomorrow (Tuesday, 3/29/16) looks like a big decision day. The apex of the triangle can fit another four or five candlesticks (8 to 10 hours of trading time) but the triangle pattern is squeezing in so tight the breakout direction will likely become evident tomorrow. The vertical side of the triangle is 60 handles so there will be a big winner and a big loser. If price breaks above up and out of the triangle, say at the starting year number at 2044-2045, price will target 2105 (2045+60). If the bears win and price collapses out of the bottom of the triangle at say 2035, the downside target is 1975.

Money flow drifts lower and the MACD line is in a negative cross which favors a bearish outcome although nothing is certain in these erratic markets. Following along from the SPX daily chart posted a short time ago, the expectation would be for price to fall. If price rises, the upper band at 2058 is an immediate target. The put/call ratios are dropping so a couple days of further bullishness should only lead to stocks rolling over and selling off. Watch the triangle pattern on Tuesday to see which way she breaks. 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.