SPX 2-Hour Chart Negative Divergence Tight Bands to Squeeze Out Big Move

The market drama continues with the 2-hour chart now showing tight standard deviation lines squeezing in to create a big price move (blue arrows). Remember the drama a couple weeks ago those bands kept squeezing and squeezing to create an initial 15-handle move that faded but then price ran higher for about a 35 point move overall from the 2040-ish low up to 2076. So another 20 to 40-handle move is at the door step. Tight bands only forecast a big move but do not forecast direction.

Using the negative divergence (red lines) as a guide the direction would be down. The RSI and stochastics are weak and bleak printing lower lows and desiring lower lows in prices. The negative MACD cross is a feather in the bear's cap but monitor it closely for a possible recovery since the negative cross is not yet convincing. The expectation is lower but as always, the central bankers are the market. So if a central banker grabs a microphone and promises more easy money, the bulls can extend the party. If the central bankers do not intervene, the SPX should drop. Key resistance above is 2070-2071, the all-time closing high at 2073 and all-time high at 2076. Key support is 2067, 2065, 2057 and 2052. The one-hour chart is in favor of bears with firm negative divergence and tight bands already squeezing price lower. 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.