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

The SPX 2-hour chart is cooked. The red lines show universal negative divergence across all indicators so a spankdown is on tap. The RSI and stochastics are overbot and have been for a few days agreeable to a pull back in price. Ditto the rising wedge. Ditto the upper band violation that needs to correct to the middle band at 2834 and rising. Price is also extended above the moving averages needing a mean reversion lower. Comically, with all this universal bearishness, stocks print record highs. The SPX prints a new all-time record high at 2855.46.This is rare and epic market action.

So stocks should sell off as the day plays out into the weekend. Marrying this 2-hour chart with the daily chart says price may have to come back up again after a selloff for a few 2-hour candlesticks (a day or three). The 2-hour chart will be useful to see where the top occurs that the daily chart predicts will happen any time in the days ahead.

The top band is at 2860-2861 and must be respected so it is a question of whether the stock market peters out now and begins dropping, or if it can hang on for a couple more hours and stick this VST top at the 2860-2861 level.

The forecast is for a drop now down to 2830 say by Monday or Tuesday, then back up for either a day or two, or it may just be a wild intraday spike higher, which will likely place THE top for the daily time frame, say next Wednesday, and then stocks should finally receive a multi-day selloff, perhaps a week or two, that will take the SPX probably 40 to a 100 handles lower. The SPX daily chart hints that the top in the daily time frame is very close. 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.