SPX 30-Minute Chart 8 and 34 MA Cross Inverted H&S Two-Leg Bull Flag Overbot Rising Wedge Negative Divergence

The 30-minute shows negative divergence set up across the board, with a rising wedge  vibe, and overbot conditions so a spank down is needed. However, any weakness will likely lead to sideways choppiness since the 1-hour and 2-hour charts need to print a couple more candlesticks to set up their negative divergence. The 30-minute is good to go now. Thus, two or three more candlesticks or so on the 1-hour and 2-hour charts equate to about one to six hours time.  There is only two hours remaining today. So the hourly and minute charts may not be set up for the bears for another few hours.

The 8 MA is above the 34 MA signaling bullish markets ahead. The dark blue inverted H&S shows a head at 1487, and neck line at 1525, a 38-handle difference, so a target for the inverted H&S is 1563. Also of interest is the two-leg bull flag in light blue. The bull flag is funky and has two potential patterns. The first leg is the same for both with a 38-handle move. Then the sideways consolidation occurs, which is much more characteristic of the sideways to lower pattern that ends at 1513, but the sharp pull back to 1505 is worth considering as well. The second legs would then target 1543 off the 1505 bottom and 1551 off the 1513 bottom. The 1543 target was achieved today. Check out the 1-hour and 2-hour charts for a cleaner look at the bull flags.

The 8 MA is 1541 so if price moves under 1541 this will cause the 8 MA to curl over to the downside to encourage the bears.  Considering the bull flag target at 1543, and the 1540 resistance that was taken out, and the strong 1548 resistance above, the projection is a move sideways through 1540-1548 into and through tomorrow with the hourly and minute charts properly setting up with negative divergence to begin a more substantive move lower late morning tomorrow or after lunch; the 1525 level an obvious downside target. 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.