SPX S&P 500 2-Hour Chart; Overbot; Rising Wedge; Negative Divergence Developing

The epic market action continues. We started watching the 2-hour chart last week to try and find out where the top is at so here is another update. From the last chart, the RSI had turned neggie d but the MACD line remained long and strong wanting price to come back up again for another higher high, and it does. The bulls have momentum on their side.

On that last peak, with the thin blue line, that is the matching high in price compared to the prior candlestick. Looking at the indicators, all are negatively diverged (red lines) except the MACD that wanted another higher high. So price comes back up again.

Now the SPX forms the rising wedge and the indicators remain negatively diverged sans the MACD line. Those pesky bulls are unstoppable. The long and strong MACD line wants another high in price after a pull back in this 2-hour time frame. Thus, another jog move down, up then down. That is 2 to 3 candlesticks which is 4 to 6 hours of trading time. The market top should occur tomorrow.

Keep watching for when the MACD line goes neggie d that will identify the top. Keep an eye on that sneaky RSI because if that prints a higher high price will want to come again for one more time.

Interestingly, during OpEx week each month, a Tuesday low typically leads to a Wednesday high. We got the Tuesday low and professional traders that know this relationship ran in to buy the market. Most of these trades will be exited tomorrow (Wednesday) which would jive with a top in the market. Both the CPC and CPCE put/calls are uber low signaling a top in the stock market is very near.

Considering all the above, it is likely that the top may occur in a couple candlesticks. A guess would be a pull back on Wednesday morning in the early going with stocks then rallying again up to the highs, then the top is in and roll over to the downside, say around lunchtime as Keystone eats a sandwich. 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.