SPX S&P 500 2-Hour Chart; Oversold; Falling Wedge; Positive Divergence; Lower Band Violation

The new trading week is off and stumbling. The SPX collapses to 2581-2584, the support level called out in the SPX S/R missive, then to 2578-2579 then bloop, down to the 2560-2569 landing zone. LOD is 2567.44. The SPX takes out the closing low of the year at 2581.00. The intraday low for this year is at 2533. The S&P 500 recovers.

The bulls are happy with the near-term set-up. Price prints a lower low and all the indicators are positively diverged. The falling wedge pattern is bullish. The stoch's are oversold and RSI at oversold levels agreeable to a bounce. Price has violated the lower band so the middle band at 2638 and dropping is on the table. This may be the start of the end-of-year rally into the Santa Claus rally from 12/26/18 through 1/3/19.

The positive divergence shows that all the indicators no longer have the juice to push price lower, instead, the indicators want price to bounce higher. A short-covering rally can add lots of further upside juice. Stocks are usually bullish into and through the Fed meetings. Stocks are usually bullish from a Tuesday low into a Wednesday high during OpEx. The month has been negative so the expectation would be for up days to finish the month. 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.