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

The SPX 2-hour chugs along. We were watching this last week to see when the near-term market top is in. The weak jobs report and non-existent wage growth created market joy on Friday since the central bankers will keep providing easy money forever.

So the 2-hour takes a day to adjust for the joy. The red lines show negative divergence across all indicators except for the MACD line that remains long and strong. Thus, price will likely retreat, in this 2-hour time frame, then come back up again for another matching or higher price high, and if the MACD line is neggie d, that will be the top. The rising wedge has a little bit of space in the apex so that may be where price tops out at 2746-2750.

The rising wedge is bearish as well as the overbot indicators. Price is extended above the moving averages needing a mean reversion lower. Price has violated the upper standard deviation band so the middle band at 2717 is on the table as well as the lower band at 2675. The arrows show that tight band squeeze that popped price like a pimple. That was a rocket launch from the band squeeze. Tight bands do not predict direction only that a big move is coming and that one happened to be up.

So stocks are all set to roll over now they only need the MACD line to go neggie d which may take 1 to 3 candlesticks which is 2 to 6 hours. A new candle should begin probably at 2 PM so let's say the top should be in for stocks anytime over the next 4 hours so today by the closing bell, or, if not, after the opening bell tomorrow morning. 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.