SPX 2-Hour Chart Megaphone Expansion Pattern Fibonacci Retracements S/R

The SPX 2-hour was highlighted last week waiting for the MACD line to roll over. The refusal of the MACD line to roll over enabled the RSI to regain juice and print a new peak to keep the very short-term Santa Claus price rally in tact. Note that the price peak did not occur with negative divergence for the RSI, MACD line and money flow, therefore, another move up to 1844-1845 or higher would be anticipated to then create universal negative divergence (thin red lines in the right margin) and verify further downside ahead. The brown expansion patterns remain in play. The thinner brown lines show an optional megaphone expansion pattern.

The Fibonacci retracements exactly nail all the important support levels at 1818, 1808-1809 and 1801-1803 which gives these levels street cred. The projection is for price to come up for one more look at the highs but should then roll over to the downside. The Fib retracements and strong support identify the 1808-1818 area as having strong potential to attract price. The 1796 horizontal support slices the expansion patterns at the center line. The gap at 1833-1835 will need filled. Key S/R is 1845, 1842, 1835, 1833, 1828, 1823, 1818, 1814, 1808-1809, 1801-1803, 1796, 1788, 1782, 1775 and 1772.  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.