Tuesday, June 7, 2016
SPX S&P 500 2-Hour Chart Rising Wedge Overbot Negative Divergence Upper Band Violation
The drama continues with the S&P 500 2-hour chart. The tight standard deviation bands squeezed out a move higher that is running up the top band (pink). Since the upper band is violated a move back to the middle band at 2100 and rising is on the table as well as the lower band at 2086 and rising. The red lines show the rising wedge pattern (bearish), overbot stochastics and negative divergence across all indicators. A spank down should be on tap, however, note the slight long and strong juice over the last few hours (short green lines) that may keep price elevated for one or two more candlesticks (2 to 4 hours). The expectation is for a roll over in price to the downside to begin probably today. The bulls have been relentless with the ongoing stock market rally backed by dovish Fed talk, rising oil prices and lower 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.