SPX S&P 500 2-Hour Chart

Here is another update of the 2-hour chart since that has been a focus of interest the last few trading days. The red lines show the matching and higher highs in price coming with negative divergence in the indicators so a couple of spankdowns are created off the tops (red arrows). The indicators remain weak and bleak printing lower lows so at least one to four candlesticks may be needed before a turnaround can be launched by the bulls which is from 2 to 8  hours of trading time. Of course the central bankers can make a dovish statement and bounce stocks at anytime they desire as is the case the last few years.

The MACD cross is bearish. The stochastics are under 50% in bear territory. Watch to see if the RSI drops under 50% which will signal further price weakness ahead. Price needs to revert back from its elevated status above the moving averages. The blue lines show a funky H&S pattern with a skinny middle head occurring within one 2-hour candlestick. To keep the math easy, the head is 2135, neckline at 2125, so target is 2115. A neck at 2123 targets 2111. Reference the SPX S/R missive previously posted where the 2108-2110 level is very strong support and would lead to trouble if it fails. A test of this landing zone is likely if price slips under 2123-2125. Lower prices are anticipated for a few hours forward unless Fed Chair Yellen or other central bankers flap their dovish wings handing out easy money to pump stocks higher. S&P futures were down -9 a couple hours ago but have recovered to down -4 with the opening bell about 90 minutes away. 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.