SPX 2-Hour Chart Overbot Rising Wedge Negative Divergence Developing

The 2-hour chart has been of ongoing interest the last few days. Negative divergence remains which creates the intraday lulls but the RSI and MACD line continue to push higher which creates another price high after a pull back. The SPX runs over 80 handles higher in less than two weeks time. Price creates a wicked, near-vertical, rising wedge. Note that the September top was created by the negative divergence although the RSI and MACD line hinted at a further high ahead and darn if price did not come all the way up off the 1650-ish bottom to create that higher high. Both the RSI and MACD line are now negatively diverged across the last month satisfying that need for price upside.

The chart is all set to top and roll over, but it was yesterday as well. Fed's Fisher, a hawk, turned dovish yesterday so traders now figure the easy money crack cocaine will continue well into 2014. Long traders are drinking all night long and plan on buying the market upside indefinitely moving forward to follow the Fed's money printing. This spurt of joyousness needs to work into the price action on the chart today. Projection is for price to top and roll over to the downside as the day progresses and we move into next week. After a strong up week, traders will want to push equities out sideways into the weekend so today may be uneventful over all. Key support is 1733, 1730, 1726, 1722, 1720, 1718 and 1715. 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.