SPX 60-Minute Chart 200 EMA Cross Head and Shoulders (H&S) Overbot Negative Divergence

The one-hour chart shows the same negative divergence as the 30-minute. The MACD line is trying to squeeze one last gasp (short green line) of life out of price so a jog may be in order then down. The H&S action can be highlighted better on the one-hour chart.  The blue lines show the H&S drama from last week, Quasimodo's hunchback H&S, two heads, or two right shoulders depending on how you want to look at it, which failed as the Friday session began. Price leaped through the 1515 level negating the blue H&S.  Alas, one door closes and another opens, so the brown lines show the flat top from Friday's action at 1518 (now dubbed the Frankestein head since it is completely flat), and the left shoulder at 1515. A right shoulder will be needed this week and the 1495 neck line remains in play. Of course if price moves up through 1518, the brown H&S will go bye-bye. The 1495 support level, and more generally 1492-1495, is a critical level since failure will take the SPX to 1465-1472 landing zone.

The 200 EMA cross is what matters on the one-hour chart and at 1484 is far below but watch this as time moves along because price will definitely venture to it for testing. For now, the SPX is above the 200 EMA so the bulls rule. 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.