SPX S&P 500 2-Hour Chart; Upward-Sloping Channel; Overbot; Rising Wedge; Negative Divergence Developing; Upper Band Violation

The SPX 2-hour chart is topping in the near-term. Note the firm negative divergence with the MACD, stochastics and money flow. The stoch's and RSI are overbot. The red rising wedge pattern is in play. Price has violated the upper standard deviation band so a move back to the middle band at 2517 and rising, at a minimum, would be needed. Price is at the top trend line of the upward-sloping blue channel and must decide to bounce above or die. All these factors are bearish.

The bulls are strong, however, and managed a higher high in the RSI. There is also some near-term juice in the MACD line. The SPX will not roll over until these two indicators go neggie d. Thus, a jog move is likely where price will fall for a candlestick, then come back up again for a higher high and at that time the RSI will likely roll over with neggie d and identify the near-term top. S&P futures are -1 about five hours before Wednesday's opening bell. 

So a jog move down then up then roll over, or, down then up then down then up then roll over is the likely outcome. The candlesticks are 2 hour trading increments. So the near term top for the stock market is from 2 to 8 hours away and more likely in about 4 hours which would be this afternoon.

Fed Chair Yellen speaks at 3:15 PM EST today with 45 minutes remaining before the closing bell. Yellen can extend the topping process by flapping her dovish wings. Always remember, the central bankers are the market. Otherwise, the expectation would be for stocks to top out today and fall into tomorrow.

The full moon peaks for the month at 2:40 PM tomorrow and stocks are typically bullish moving through the full moon. Perhaps a slight recovery will occur from Thursday afternoon into Friday morning when the Monthly Jobs Report is released. The bears are ready to take a turn at bat later today as long as Yellen does not take away the bat and ball with her typical dovish talk. 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.

Note Added 1:33 PM EST on Thursday, 10/5/17: As usual, Yellen flies in on her white dove promising easy regulations for banks. Although she did not comment directly on monetary policy, Yellen said the Federal Reserve is actively working towards reducing banking regulations especially for the regional banks. That is music to Wall Street's ears. Yellen's term ends on 2/3/18 so for the next four months she will be pumping the banks higher. Of course she will. If she retires in February, by next summer she will appear at a token luncheon hosted by Goldman Sachs or another investment bank where she will be handed $250K or more just like former Fed Chairman Bernanke. The Fed members are rewarded handsomely by the investment bankers for their dovish loyalty once they leave office. The  privileged elite class always protects their own. So the RSI places a higher high and you know that price is not yet ready to roll over. The SPX prints a higher high and the RSI and MACD slope higher now providing a little more upside juice. The stochastics and RSI remain overbot. The stoch's, MACD histogram, and money flow indicators remain neggie d and want to see price roll over to the downside. So the RSI and MACD line have to negatively diverge to place the near-term top so probably a jog move down then back up (where the RSI will likely go neggie d) then down then back up for another high (where the MACD line and all indicators should be neggie d) and the top will be in. Yellen squeezed out another dozen SPX handles by flapping her dovish wings concerning the banks. So the top is likely 2 to 4 candlesticks away which is 4 to 8 hours. The full moon peaks for the month at 2:40 PM only an hour away so stocks may remain buoyant today. The SPX near-term top target is tomorrow morning into tomorrow afternoon. The Monthly Jobs Report drops in the morning.