SPX S&P 500 2-Hour Chart; Overbot; Negative Divergence; Upper Band Violation

Here is another look at the 2-hour as the quest for the market top continues. Price prints a matching high and the indicators turn neggie d so price receives a spankdown. The MACD was flattish so some buoyancy in price may linger for a candlestick or two.

The upper band was pierced so the middle band at 2766, and rising, is on the table. The 2-hour chart is bearish but remember the SPX daily chart. If you bring that up you can see that the MACD line and RSI are long and strong but the other indicators such as stochastics are neggie d.

On the daily chart, price will likely sink for a day or two, but then come back up to satisfy the MACD and RSI, and if neggie d is in play, that is the top in the daily time frame which leads to more substantive downside. The 2-hour above identifies the VST market machinations. So price is retreating which is agreeable with the daily chart but the daily chart wants another price high so that will bring the 2-hour chart back up probably after a day or two. 

Interestingly, the new moon peaks for the month in 8 hours at 9:17 PM EST. Stocks are typiclly weak moving through the new moon each month. The SPX may drift lower for a day or so but will likely come back up to satisfy the daily chart so THE short term top on the daily chart is likely Thursday through Tuesday. If an event or other catalyst occurs, that may take stocks down right away. The SPX may target that 2766-ish area over the next day or two then recover higher. 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.