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

The SPX 2-hour chart is ready to bounce. The S&P 500 is getting bludgeoned right now down 138 points, -3.5%, to 3651 the LOD and lowest number since December. It is ugly. The blood is flowing on Wall Street. Everybody and his brother are negative. The new 2-hour candlestick just started at 2 PM EST and clearly displays another lower low in price as explained. All the chart indicators, however, are positively diverged (sloping upwards) so the negative energy is used-up in the 2-hour time frame.

The falling wedge pattern is bullish and the RSI and stochastics are oversold agreeable to a bounce. The daily chart is generally set up with possie d as well hinting at a several-day rally ahead but the RSI and histogram have to be watched. The 2-hour wants to bounce now, in real-time, so the indicators on the daily chart need watched to see if the rally has legs through the daily time frame. Even if not, the daily chart should set up within a couple days and begin rallying tomorrow or early next week.

So the hourly and daily charts are setting up for a relief rally. The only thing that can negate the set-up is more negative news that the charts will then have to price-in. The doom and gloom is at fevers pitch for a week so you would think the negativity and 'the world is going to end' talk would be exhausted. So barring any bad news, the SPX 2-hour chart wants to see higher prices in this time frame which means Friday (tomorrow) should be happy for bulls.

The SPX weekly chart is agreeable to the bounce in the hourly and daily time frames and will help provide some juice for the rally but the MACD is weak and bleak on the weekly which means prices will have to come back down again, in the weekly time frame, to make matching or lower price lows and at that time, say a week or two out, will begin a multi-week rally in the stocks market.

Summing up the mumbo jumbo, the 2-hour says bounce now into and perhaps through Friday. Stocks should get a bounce in the daily time frame as well to provide a several day rally but if not, the daily will begin rallying in a day or three. Stocks will then rally in these shorter time frames towards the end of the month, however, stocks should then roll over again (because of the weak and bleak MACD on the weekly) to match the current lows, and then from there, say starting the last couple days of the month or first couple days of July, begins a multi-week upward run in stocks. The only thing that can alter the path is negative news crossing the wires.

To make an easy trade, simply watch the SPX weekly chart and wait for the MACD to go possie d joining the other chart indicators that are already set up with positive divergence and go long the market for the several-week rally (this should occur sometime over the next couple weeks). The MACD will tell you when the bottom is in and the rally in the weekly time frame begins.

The SPX worsens to new lows now down 141 big points to 3649. It is panic and indiscriminate selling. Traders and investors are throwing out the baby, the bathwater, the sink, and then jumping out of the window. 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 2:51 PM EST: Traders are now clawing for the exits selling any stock they can not the ones they want to sell. The SPX crashes 147 points, -3.9%, to 3642. There is carnage. The TICK machine is printing numbers at -800 to -1100 consistent with where bottoms occur due to rampant out of control selling.

Note Added 2:54 PM EST: The SPX crashes 150 points, -4%, to 3640. LOD 3639.77. VIX 34.34.

Note Added 3:02 PM EST: SPX 3658. VIX 33.91.

Note Added 3:28 PM EST: SPX 3673. VIX 32.95.

Note Added 3:49 PM EST: SPX 3647. VIX 34.21.

Note Added 5:25 PM EST: SPX ends the session down 123 points, -3.3%, to 3666. How appropriate the infamous '666' appears. VIX 32.95. Uncle Vix is at the same level as 3:28 PM when SPX was higher. Stocks keep selling off with panic and fear but the volatility is not moving higher. VIX was hitting its head against 33-34 today unable to print a 35 handle despite stocks falling all day long. The possie d discussed above on the SPX 2-hour chart looks bueno so the stock market is ready to rally tomorrow. Remember, the only thing that would change this outcome is if bad news occurs overnight such as more commodity supply constraints. However, if positive news should happen overnight such as the death of Putin, or positivity with the Ukraine war, or with the inflation battle, that will create a double-whammy of upside joy for stocks since the 2-hour is already wanting to rock and roll like ELO. The SPX daily chart is in good shape with possie d and willing to follow the 2-hour's lead if it starts to take off higher. If not, the daily chart likely would only need a jog move to bottom and begin rallying (up for a day, back down for a day, then up and away).