SPX S&P 500 2-Hour Chart; Sideways Symmetrical Triangle

The SPX keeps lining out sideways. It has been an indeterminate chart lately since you cannot find positive, or negative, divergence with price moving sideways. The sideways symmetrical triangle is in play with price respecting the triangle for a couple weeks. Price prints 2 candlesticks thus far today. Stockcharts is a pseudo-2-hour chart since it prints a candlestick at the opening bell and then 10 AM EST, 12 PM noon, and then 2 PM EST. So you can check at those times to see if the chart shows which direction it favors.

Price is nudging up against the upper triangle trend line at 3101 so it will either burst up through or receive a spankdown. A successful back kiss for the bears would then send price down towards 3055. The bulls need the breakout higher.

The indicators are lining out sideways so as stated, you cannot assess divergences with price not making any new highs or lows. The vertical sides of the triangle are, say 240 points and 190 points. These are eye-balled so you can go in and look at it in more detail. Thus, if the bulls win and breakout higher, the 3291-3341 area would be the upside target which will be record high stuff. If the bears win, and price weakens from here, the SPX will test support at 3055-ish and if that fails, the 2815-2865 landing zone is targeted.

The bulls are winning with trading just getting underway here in the States on a Monday morning pushing up through the upper trend line to 3103 and now 3105, no check that, 3106. The bears have to put a stop to this right now since a smack down from here would still be a successful back test but if price keeps sneaking higher, the bears will fold like a cheap suit and the bulls will ride to victory ahead.

Sideways triangles are interesting patterns in that many times they will show a fake-out move from one-half to two-thirds of the way through the triangle pattern. Interestingly, note the breakout from last week, which turned out to be a fake-out, and price collapsed back inside the triangle. Usually, price will return inside and then seek the lower trend line support and fail there giving up the ghost. Same the other way. Price may show a failure halfway through but then many times you will see price jump back up inside the triangle and shoot out the top of the pattern. Thus, keep a close eye on things since that fake-out move may hint that price will drop out the bottom of the triangle in the hours and day or few ahead.

Right now, however, the bulls are winning and if the bears do not step up to the plate fast, they will strike out. 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 10:22 AM EST: SPX 3104.

Note Added 10:23 AM EST: SPX 3103. UTIL 780. Bulls are pumping utilities, banks and commodities to provide upside support for the stock market. GTX is at 1666 and bulls will receive serious firepower higher if price crosses above 1685.

Note Added 10:31 AM EST: SPX 3102. Look at that. Price back-tested the trend line and failed by the looks of it so the back test is successful for bears and should open the door to downside. Bulls are keeping utes elevated, however, so bears will have trouble making headway lower unless utes and banks start puking and if volatility starts trending higher.

Note Added 10:36 AM EST: SPX 3100, no, check that, 3099.

Note Added Tuesday Morning, 6/23/20, at 3:57 AM EST: The SPX finishes yesterday up 30 points, +0.7%, to 3118 using the 20-day MA at 3099 as support. The bears tried to push stocks lower but the utes, banks and volatility remained in the bull camp; therefore, the bears had nothing and stocks recovered. S&P futures flash crash overnight by 60 points and quickly recover after comments by President Trump. US Trade Representative Peter Navarro said the China trade deal was over and it was misinterpreted to mean the phase one deal rather than future negotiations. The bulls are breaking out of the triangle to the upside so keep watching. Bears would have to return price inside the triangle today or tomorrow, otherwise, the rally should continue. Sometimes triangles will broaden out by poking out some more highs, then coming down to poke out some more lows below the triangle, which serves to extend the triangle out sideways and push the ultimate decision time to a few weeks down the road. For now, the song remains the same. the rally continues but stocks are way overextended with rampant complacency in play.