SPX 2-Hour Chart

The green lines show the falling wedge, oversold stochastics and positive divergence that create the rally today. The indicators are long and strong, sans the RSI that flattened over the last couple hours, so higher highs in prices are desired after any pull backs in this 2-hour candlestick time frame. Taking a wild guess and projecting a rising wedge would bring price higher to test the important 1808-1810 resistance as well as the 50-day MA at 1812.67. Price can pull back to 1791, even the sturdy 1788 support, and still maintain the proposed rising wedge pattern.

Looks like the bulls have a more juice for the recovery rally. If 2 to 4 candlesticks are needed, at a minimum, to top price out and roll it over again, this is about 4 to 8 hours of trading time which can easily take equities into lunch time tomorrow, even into the weekend. The daily and weekly SPX charts remain weak overall so further market weakness would be expected after a day or three bounce.

Key S/R is 1832, 1828, 1824.52 (20-day MA), 1815.73 (200 EMA on 60-minute), 1812.67 (50-day MA), 1808-1810 (also the left shoulder of H&S), 1806, 1801-1803, 1796, 1793, 1791, 1788, 1781, 1778.97 (20-week MA), 1772-1775, 1768.24 (100-day MA), 1768, 1763 and 1745. Price is now fighting along the 1796 S/R. 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.