SPX S&P 500 2-Hour Chart Sideways Channel

The 2-hour chart shows price staggering sideways (brown channel) through 2175-2120 since early April five weeks ago. The SPX is knocking on the upper rail trying to break out to the upside. Bulls win big above 2120-2125. Bears win big under 2075-2080.

The all-time record high is 2126 in late April when the neggie d formed (red lines) smacking price lower. The red rising wedge and overbot conditions also create the spank down. Then the bulls fight back when price hit the lower rail of the brown channel forming a falling green wedge with oversold conditions and possie d (green lines); this creates the launch higher after the jobs report. The market bears were ripped off, however, since the MACD line was weak and bleak and wanted price to make another low in price before a proper bounce would occur but stocks took off to the upside in a vertical move instead. Weak wages and jobs indicates the Fed in no rush to raise rates so easy money sends stocks higher. The central bankers are the market.

Right now, price keeps hitting its head on the 2118 level. The matching highs in price is creating neggie d with the RSI, histogram and stochastics so a slight pullback should occur, in this very short time frame of trading, which is currently occurring in early trading on Monday. The MACD line, however, is long and strong ditto the money flow and the RSI is not overbot. These three parameters hint that price will drift higher for a higher high after the slight pull back so the record closing and intraday highs at 2118-2126 may be challenged today and/or tomorrow.

The market bears need the MACD line and money flow indicators to roll over to the downside. If one to three candlesticks are needed to roll price over that is 2 to 6 hours of trading time which takes trading into tomorrow morning. If the RSI squeezes out a smidge of a higher high compared to the last five candlesticks, then it will likely want to move up to the overbot territory and stocks would likely stay elevated into and perhaps through tomorrow into Wednesday. This afternoon will shed more light on the situation after a couple more candlesticks print.  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.