Sunday, February 26, 2017

SPX S&P 500 2-Hour Chart; Negative Divergence

The 2-hour chart receives a spank down from  the red rising wedge, overbot conditions and negative divergence (red lines). There was no reason for price to come up for a higher high since the move is out of gas. But price came up for another matching high and the blue lines show neggie d firmly remaining in place so price should be smacked down again, and it was. Price comes up again for another matching high, very odd behavior, with a new all-time closing high at 2367.34. The all-time high is 2368.26 on 2/23/17.

The purple lines show negative divergence remaining so the expectation is for price to move lower again. Happy talk about President Trump's policies keeps the stock market buoyant. The president speaks before Congress on Tuesday evening so details should be provided concerning his policies and stocks will react on Wednesday morning; the first day of March. EOM is Tuesday.

Stocks are usually weak moving through the new moon which occurred this morning. When a month is up wall-to-wall, like February, it usually finishes the month weak. On Sunday evening, S&P futures are +2.  The market bears are getting short-changed. As long as positive President Trump news does not occur, the chart wants price to move lower. 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.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.