SPX S&P 500 2-Hour Chart

The SPX 2-hour chart created a W pattern as July ended and August began. The base is 2800 and breakout level is 2822 so the upside target to satisfy the W pattern is 2844 (2822+22) which is now satisfied. Price is hugging the upper standard deviation pattern so it will need to return to the middle band, at a minimum, at 2822. The lower band at 2798 is also on the table.

The stochastics are overbot agreeable to a pullback. The RSI is not yet overbot so that door remains open and must be respected for the next couple-few hours. The red lines show negative divergence in play as price comes up to print the matching high from a couple weeks ago. The RSI and MACD line show a sliver of long and strong juice for today but over the last couple weeks or more are neggie d. The expectation would be for the S&P 500 to top out and roll over in the hours ahead and target the 2822-2828 level as an initial downside target. The SPX prints 2845 as this message is typed just before munchtime in the States.

Watch the Russell 2000 which will either punch up through the 20-day R or fail through the 50-day S. The SPX will move in sync with the RUT. 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.