SPX S&P 500 2-Hour Chart; Overbot; Negative Divergence; Upper Band Violation; Price Extended

Let's drill down into a shorter time frame to see what price is doing. Stocks receive an upside bump after President Trump's Tuesday night speech. Market participants are developing more confidence in the president as he assumes a more responsible, stoic and leadership posture ditching his bloviating braggadocio carnival clown personality. Traders remain excited about the president's promises for huge infrastructure spending, lower taxes and less regulation.

The price spike high is above the upper standard deviation bands so the middle band at 2373 and rising is in play. As price made the new high (thin blue line), the RSI is cooked with neggie d. Ditto the histogram, stoch's and ROC. The MACD line is also negatively diverged over the last couple weeks but there is the tiniest sliver of upside juice available (tiny green line). So the SPX may want to come up one more time to a matching high at 2400 then roll over. The other outcome would be the SPX simply continuing to drop from here in the 2-hour time frame.

The daily chart is open for one more high perhaps tomorrow and also on the verge of rolling over (see previous chart). Thus, stocks will likely either roll over from here or receive another boost tomorrow to 2400-ish, then roll over. Bears need VIX above 12.86 to create serious selling but the central bankers maintain their jack boots on the neck of volatility for the last 8 years. Price is on an island above SPX 2380 so an island reversal pattern may be in play once price begins to retreat. 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.