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

Here is the 2-hour chart for S&P 500 as the wait for the MACD to positively diverge continues. Comically, it is like waiting for Godot. This is interesting to watch over the last three days. The shorter term charts such as the 30-minute produce a bounce but price keeps coming down because the MACD line on the 2-hour will not cooperate. On the macroeconomic level, Morgan Stanley forecasts a $20 oil price which beats oil prices lower, thus energy stocks collapse, and this carries through to the stock market.

The oversold conditions, possie d (except for the MACD) and falling wedge all want to see a bounce and relief rally. Price will make another jog move, up, then back down to see if the MACD can finally flatten  and positively diverge, thus, 1 or 2 more candles means it will take the market another 2 to 4 hours to find the bottom; that places the market in front of today's closing bell, say the last one-half hour of trading, or into tomorrow morning when the near-term bottom is likely.

The SPX sure did fall down the rabbit hole, flushing hard. The recovery rally should occur as described above beginning anytime despite the carnage in the streets, or perhaps because of the carnage. Note how SPX price came down to the 1910-1912 support, then failed, so the uber strong 1897 support is in play (reference the SPX Support/Resistance missive). LOD 1901. Price is using the 150-week MA at 1903 as support. 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.