SPX 60-Minute Chart 200 EMA H&S Pattern

The blue lines show the ongoing H&S pattern under development. A head at 1600-ish, neck line at 1540-ish, targets 1480-ish.  So the drama right now centers around the potential right shoulder now in place.  Will the SPX drop from here and then lose the 1540 neck line in the days ahead which would target the sub 1500 numbers, or, will the bulls spoil the bears fun again and push the SPX up through 1600 negating the H&S? The indicators are negatively diverged now sans the MACD line. The SPX price has only made a matching high as compared to four hours ago so a move up into the 1580's would lock in the higher high in price and should lock in the negative divergence that will begin a move back down. The RSI did not become fully overbot so there is room for upside especially if the earnings reports are all happy, and, most importantly, if the BOJ continues to debase the yen (higher dollar/yen and higher equities).

The 200 EMA cross shows the SPX above signaling bullish markets for the hours and days ahead. The bears cannot catch a break. Every time the markets hint at a substantive move lower, the bulls fight back.  Projection is for some slight elevation in price to the 1580's but negative divergence in the indicators should roll it over to the downside again at anytime. Resistance above includes 1580, 1582, 1586 and 1589 (last week's high). 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.