SPX SP 500 2-Hour Chart; Negative Divergence Developing; Overbot; Rising Wedge; Upper Band Violation; Gaps

The SPX has rocket-launched off the bottom one week ago. Price runs higher and stops at the resistance level from mid-October. The important 100-day and 50-week MA resistance levels are at 2820-2822 so keep an eye on these two characters. They are gate-holders for a further rally higher in the stock market.

The stochastics and RSI are overbot agreeable to a pull back in price. Ditto the red rising wedge which is a bearish pattern. The red lines show neggie d with the histogram, stochastics and money flow. S&P futures are down -11 before the opening bell for the regular session so this neggie d creates this weakness. The long and strong RSI and MACD line say that price has enough energy to likely come back up again after any dip lower. The SPX will top in the 2-hour time frame when the RSI and MACD negatively diverge joining the other parameters. The RSI may turn neggie d in a couple candlesticks and the MACD a couple after that so 2 to 4 candlesticks is 4 to 8 hours of time which is today into tomorrow.

The bond market is closed on Monday for Veteran's Day (thanks to all the vets out there) but stocks will trade. Stocks are typically bullish the two days in front of a three-day holiday weekend although it is only a long weekend for the bond traders. So the bulls have a seasonality factor slightly on their side. Stocks are usually buoyant into the Fed meetings. Stocks are typically weak moving through the new moon which peaked yesterday so perhaps some of that gloom contributes to the soggy futures.

Thus, due to the long and strong behavior on the RSI and MACD line, stocks may not peak for a few hours or a day or two. The Fed announcement is today so perhaps the movement in the indicators will condense tighter and create wild excitement.

When price rolls over, the gaps below (purple circles) will need filled. Price violated the upper band so the middle band at 2747 and rising is on the table. Remember, the 12-month MA at 2755 is a critical cliff edge for the stock market. Bulls beat the devil this week pushing the SPX back above 2755. If the SPX fails again at 2753-2758, the stock market will be toast for many weeks, months and perhaps years ahead. The SPX is at 2814 as the Thursday session begins. 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.