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

The SPX continues printing new all-time record highs including today at 2481.69 the highest number ever for the S&P 500. Strike up the band. Cue the dancing girls.

The rising wedge pattern is bearish. Stochastics are overbot agreeable to a pullback. The red lines show universal negative divergence across all indicators so the expectation is that the pull back for stocks begins now. It may be timed with the Fed statement at 2 PM EST. The only thing that could override the negative technical set-up is a positive news event so perhaps the FOMC may surprise markets creating more upside juice. If so, the chart will need a few candlesticks to price in that new joy.

But if the Fed announcement is uneventful, the chart should override and spank price lower. The low put/calls have been forecasting a pull back since last Friday. Price violated the upper band so the SPX should print at the middle band at 2473 for starters and the lower band at 2465 is also on the table. The SPX may want to come down and explore that huge gap at 2460-2465. If price falls through the gap at 2465 to 2460 and lower, that would be an island reversal pattern.

It looks like the bears will finally have a turn at bat after the bulls slap them around day after day. 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.