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

Here is another look at the 2-hour. Keystone was showing how this chart set up with possie d since late last week. Yesterday was fun to watch. You could see the exact conception f the bull rally. Remember, the CPC and CPCE put/call ratio's were off the charts. The NYMO and BPSPX were in complete collapse. You knew markets were ready to rock and roll (on the very short term time basis).

Then looking at the 2-hour, the falling green wedge is bullish. Yesterday price came down for that one more low you see due to the weak and bleak MACD line but once that occurred, the indicators were all positively diverged and the SPX was on the launch pad. Va-room. Stocks explode higher receiving the possie d power along with all the juice from the put/calls, NYMO and BPSPX. The up day was record-setting with the Dow gaining 1,086 points the largest point day ever in history.

The SPX had violated the lower band so the middle band at 2447 is on the table and price has tagged this level. The upper band is on the table at 2568 and dropping.

All that windbag stuff aside, what next? That is all anyone cares about. What have you done for me lately? Note that the indicator lines are all long and strong (green lines). That is interesting considering that the SPX is tanking 43 points right now. The indicators want to see higher highs for price despite the strong pull back today.

Note how price made a high along with the peak in the RSI but there is no neggie d there to cause the slump in price for the last two candlesticks (it is odd to see price moving lower since the chart is more agreeable to seeing the SPX moving higher). Assessing the 2-hour chart above, the S&P 500 will likely recover and the Santa Claus Rally should continue in the hours, say a couple-three days, ahead. 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 Early Friday Morning, 12/28/18: Stocks stage a record-setting intraday rally the Dow prints an amazing 870-point intraday turnaround to the upside. Television pundits and Wall Street guru's say they never saw the rally coming. You, however, knew it would occur as explained in the chart above.