SPX (S&P 500) 2-Hour Chart Negative Divergence Tight Bands Bull Flag Inverted H&S

The bulls keep slapping the bears around with help from JPM and continued positive central banker talk that the easy money spigots are flowing. The RSI sneaks out more juice but tops out after that spike higher a couple days ago. Price is on an island above 2159, where it is printing as this is typed, and may perform an island reversal dropping like a stone through the gap to 2153 and lower. Otherwise, price may simply venture lower to fill the gap.

The red lines show neggie d that is rolling price over to the downside. The MACD cross is negative. The tight standard deviation bands are interesting. A big move is at hand in this 2-hour time frame. Price will either rocket higher, or quickly collapse. The blue two-leg bull flag targets 2180 and price tagged 2170 that is close enough for government work. The brown lines show an inverted H&S; the head at 2000 and neckline at 2105 targets 2210 (2105+105).

The expectation is lower prices unless a central banker touts more dovish talk. The tight bands say price will likely either be at 2210-2230, or, 2100-2120, say, early next week. Someone will be happy and someone will be sad. Watch to see if an island reversal occurs described above. It looks like something exciting should happen between now and Monday lunch time. Low put/calls indicate rampant complacency and a near-term market top. 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.