The SPX 2-hour is topped-out and should receive a neggie d spankdown to begin the week (red lines). Price floats higher printing matching or higher highs but the chart indicators are sloping down; negative divergence. It tells you that price is out of gas and will receive a slap-down.
The SPX runs higher along the upper band so that violation opens the door back down to the middle band at 3983 and lower band at 3918. The stochastics are overbot agreeable to a pullback and the RSI has been at or near overbot levels twice over the last 2 weeks.
The blue arrows show the tight standard deviation bands. Tight bands forecast a big move but do not predict direction. In October, the tube of toothpaste squirted higher. In early November, the tight bands shot the SPX lower. A few days ago, the tight bands squeeze price higher.
The Aroon is at maximum bullishness with the green line at near 100% and the red bear line down at 0%. Perhaps a red above green cross is coming.
A neggie d spankdown is on tap for the SPX 2-hour timeframe unless positive news hits the tape and keeps the party going. The 3983 is a logical first target.
The downside should be short-lived since the SPX daily chart remains bullish with a long and strong MACD that wants another price high in the daily timeframe. However, the daily chart is also getting close to topping out probably in the week ahead. Thus, stocks will likely be soggy on Monday perhaps into Tuesday but then should perk-up and rally again and make another high above 4034 on the daily chart. 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.
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