Wednesday, March 30, 2016

SPX S&P 500 2-Hour Chart Yellen Rally

The drama on the 2-hour chart continues. The chart has wanted the SPX to roll over but the central bankers keep pumping equities higher. After each pump, the chart has to reset factoring the move into the price. The blue circle shows where ECB President Draghi goosed the stock market. The purple circles show the two pumps by Fed Chair Yellen. Note that price did not bounce due to positive divergence. This behavior verifies that the rally is due to central banker pumping.

The current price candlestick is completely above the upper standard deviation band displaying off-the-charts uber bullishness. This is a rare occurrence. A move back to the middle band, at a minimum, at 2042 and rising is on the table. Stochastics are oversold and maxed out at the ceiling so this will lead to the first pull back in this 2-hour time frame. Stocks will come back up after that, however, due to the strength in the RSI and MACD. It may take from 2 to 5 candlesticks to create the next top with negative divergence so say anytime from lunchtime today through the end of day tomorrow. The central bankers are powerful. The brown triangle shows price breaking out to the upside.

Put/calls remain low and have not yet been satisfied with a big selloff. the TICK machine tags +1300 today uber bullishness. NYMO remains elevated and has not yet come down. The SPXA50R is at multi-year highs. The bulls are partying like its 1999 but if the bears stay patient they should get a turn at bat in the days ahead. As long as traders maintain confidence in central bankers, the band plays on. 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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