SPX S&P 500 2-Hour Chart; Oversold; Falling Wedge; Positive Divergence; Lower Band Violation

The SPX collapses -2.4% today, Wednesday, 9/23/20, to 3237. The SPX 3588 top seems like a distant memory. From 3588 to 3237 is a loss of 351 points during the selloff thus far; a -9.8% crash. A -10% drop is considered a correction and a -20% drop off the high is considered a bear market. The market makers stopped the SPX from entering correction today so everyone could catch their breath overnight and maybe rethink the carnage route ahead.

Instead of a calm night of reflection, Whitehouse Economic Adviser Kudlow runs to a microphone proclaiming that the US does not need another large stimulus bill. Kudlow harpoons the futures with the S&P's down -17 points. King Donnie will probably make Kudlow walk the plank and retract those harsh words tomorrow morning. The stock market is in serious failure right now so it would be surprising to not hear some type of happy talk in the morning, either from the Fed touting more money-printing, or Congress proclaiming that a stimulus bill is nigh, or King Donnie announcing that a vaccine is available next Tuesday.

Despite the stock market bloodbath with volatility, utes, retail stocks, chips and copper all jumping off a cliff creating negativity, the SPX 2-hour chart wants to bounce. If there is happy talk, the 2-hour possie d will kick into gear and the bulls will be given a reprieve.

The green falling wedge is bullish. The green lines show the positive divergence in play which has price fueled up ready for a big bounce in the 2-hour time frame. The RSI and stochastics are coming off oversold levels. Price has violated the lower band (today's LOD is 3232 with the lower band at 3230 but that is close enough for government work) so the middle band at 3303 and upper band at 3377 are in play. All of these parameters are bullish for the stock market in the 2-hour time frame.

The RSI and stochastics are slapped down currently so it may take a candlestick or two (2 to 4 hours which would be 11:30 AM EST to 1:30 PM EST Thursday) for the launch to begin. Price is at that lower rail of the triangle a logical place to bounce from. If the happy talk does not occur in the morning, the 2-hour chart will likely rule the day and bottom in the morning sometime or noon time and then a mini rally will begin. However, if Kudlow refuses to walk the plank or some other negative news occurs overnight, Katy bar the door, because there is a powerful sh*tstorm coming at you and you bess take cover.

The SPX daily chart shows a weak and bleak RSI and MACD line, and money flow with the stochastics and histogram possie d. The 2-hour will likely conspire with the stoch's and histo on the daily creating the bounce in the 2-hour time frame say from tomorrow morning into Friday, but the daily will reassert itself and it wants to see another lower low for price say a few days out in the daily time frame. The markets are Rockin' in the Free World. 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.

Note Added Friday Morning, 9/25/20, at 2:22 AM EST: The SPX bottoms at 9:40 AM EST yesterday and receives the possie d pop. Price started to stall sideways but there is Pelosi and Mnuchin chatter about a fiscal stimulus bill. Who would've thunk it? The dirtbag politician's actions are easy to predict once you spend time observing the animal's behavior. S&P futures are +11. The CPC and CPCE put/call ratios are still not elevated as yet to demonstrate panic and fear. The dip-buyers keep tripping over each other to buy, buy, buy, knowing that the four central banker horseman of the financial apocalypse, the Federal Reserve, BOJ, ECB and PBOC, will print money like madmen to send equities higher forever, er, at least until the Fed rides in for the last time on the pale green horse. The put/calls need to move higher to show panic and fear before nibbling on any long positions. Once the day is underway and the 2-hour chart prints a couple candlesticks you can start to watch for when the near-term top will occur due to neggie d. It is expected that stocks will roll over and die again, perhaps on disappointing news with the fiscal stimulus bill, since panic and fear remains on a milk carton (missing). You will see panic and fear and that is when you want to run into the burning building to buy stocks as everyone else is running away dumping their long positions while screaming bloody murder.