SPX S&P 500 2-Hour Chart Positive Divergence Developing

The SPX trails lower today despite the robust futures overnight. On the 2-hour chart, the stochastics are overbot wanting a bounce from here, ditto the other indicators but the MACD line remains weak and bleak wanting another lower low in price after any bounce. Thus, one to three candlesticks are needed to likely create the near-term bottom which is 2 to 6 hours of trading time. So today is a good candidate for a bottom. Watch the MACD line to see if it flattens and improves to the upside. The 2030-ish level represents the support lows from early February trading action.

If the bears push lower today a bottom is likely at say lunchtime into the afternoon or first thing at tomorrow's opening bell. If the Fed starts jawboning the markets that will likely create a bottom so watch the news wires for any happy talk from the central bankers. The SPX is down three points to 2044 so the expectation would be a near-term bottom say at 2030-2044 over the coming hours. Once price recovers it may run quickly higher. Whoa, price keeps dropping now at 2041. Watch the MACD line to see when it goes possie d; it remains weak and bleak right now. 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.

Note Added 7:38 PM: The bulls ran out of gas today and markets fell into the closing bell with the SPX ending at 2040. Price makes a lower low and the RSI is positively diverged. Ditto the histogram, and stochastics, however, the MACD line keeps sloping lower and also the money flow indicator (not shown above). The ROC is positively diverged. The falling wedge pattern is in play (bullish) and the RSI and stochastics are oversold (bullish). So the chart is in very similar shape this evening to the way it was this morning (above). Thus, a bounce in price is needed and would be expected tomorrow morning but the MACD line and money flow want to see another lower low in price after the bounce. This should take 1 to 3 candlesticks to place the near-term bottom about 2 to 6 hours; unless the Fed or ECB pump the markets with happy talk overnight where a rally will immediately occur. So the expectation if for a near-term bottom to occur tomorrow. The SPX may proceed with a bounce to 2045-2050, then retreat back down to 2038-2042, where the MACD line should turn possie d, then that would be the bottom and the bulls will stage a recovery move that initially targets the 2055-2057 area. The 100-day MA S/R is 2042.05 so watch this level like a hawk; bulls win above bears below. The critical 20-week MA is 2055.30 serving as overhead resistance. Bulls got legs above 2055 but got nothing if price stays below 2055.