SPX S&P 500 2-Hour Chart Diamond Pattern

The 2-hour chart shows the red rising wedge, overbot stochatics and negative divergence that create the spankdown last week (red arrow). The blue arrow was a last spurt higher on weak Chinese data since the PBOC will print more money to goose stocks higher. The brown circle is the recovery last week due to the big oil rally (oil was up +10% last week), higher copper and lower volatility (record lows).

The blue lines show a diamond pattern in play now. The 2183-2184 level serves as a pivot point area. Diamond patterns are not good predictors of direction only that a commitment to direction will occur. The indicators are stumbling sideways not hinting at a firm up or down outcome. Considering the low CPCE put/cal ratio, the bears have to be given the advantage going forward so the resolution would be expected to break lower going forward. 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.