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

The SPX 2-hour chart collapses on this morning's latest drubbing but the chart indicators are in universal positive divergence (green lines). The indicators are fueled-up and ready for a relief rally in the 2-hour time frame. Price has already recovered to test the bottom trend line of the downward-sloping red channel and is spanked back, but price should pop back up into the channel and perhaps up through. The SPX daily chart is also set up with possie d which will work in tandem with the 2-hour and likely create a relief rally in the VST (very short term; several days).

However, the SPX weekly chart still has a weak and bleak RSI, MACD and stochastics and needs a couple more weeks to set up positively. Thus, the US stock market will likely recover today from its deficit and rally for a few days perhaps a week but it will then roll over lower again and make lower lows on the weekly basis. Be water, and nimble, my friend.

The market is obviously very emotional and news-driven right now. Traders are on edge that dirtbag insane Putin, Vlad the Impaler, will do something crazy before or on the Monday Victory Day holiday in Russia. A nuclear weapon discharge this weekend will change the world forever. If Putin does not do anything nutso in Ukraine into Monday, stocks should run bigtime higher but still follow the path explained above. 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 1:00 PM EST: The SPX is at 4149 now flat on the day after recovering from a 82-point deficit at the LOD at 4067. It's a possie d rocket launch with price now tapping on that lower red trend line of the falling channel, trying to poke back up into the channel.

Note Added Thursday Morning, 5/12/22, at 7:00 AM EST: Stocks are crushed this week as Joe Sixpack and Jane Retail pull their money out of the stock market. It is the first time that a notable loss of confidence has occurred in the markets. The stock market is suffering serious technical damage, however, a dead cat bounce should be in the offing.