What an amazing move it has been from the lows; at today's high so far, the S&P-500 had climbed 92-pts (13.8%) in just over 3 days.
The potential negative divergence on hourly RSI yesterday was nullified early in the day and the upper bollinger band on the hourly chart, which was flailing in the wind as of the intraday update early yesterday, ended up acting like a magnet, after all.
By the time prices had reached the band, it was in the vicinity of 750. That was late yesterday. Since then the index has struggled to 758 (at which point it was outside the upper band) but is unable to push the band out of the way again.
As such, traders will want to expect some consolidation at these levels, at the very least.
However, we would not rule out the possibility of a drop over the next day or two. The lower bollinger band is now flat and it is very far away from current action. If the bears can get their act together, they might be able to deliver the index to the lower hourly band between today and Monday.
The fact that hourly RSI and hourly MACD are overbought also brings about the possibility of a correction/consolidation. It'll take a brave soul to short the markets in light of the past four days. Nevertheless, we leave you with the chart.
« Intraday Stock Market Update »
What an amazing move it has been from the lows; at today's high so far, the S&P-500 had climbed 92-pts (13.8%) in just over 3 days.
The potential negative divergence on hourly RSI yesterday was nullified early in the day and the upper bollinger band on the hourly chart, which was flailing in the wind as of the intraday update early yesterday, ended up acting like a magnet, after all.
By the time prices had reached the band, it was in the vicinity of 750. That was late yesterday. Since then the index has struggled to 758 (at which point it was outside the upper band) but is unable to push the band out of the way again.
As such, traders will want to expect some consolidation at these levels, at the very least.
However, we would not rule out the possibility of a drop over the next day or two. The lower bollinger band is now flat and it is very far away from current action. If the bears can get their act together, they might be able to deliver the index to the lower hourly band between today and Monday.
The fact that hourly RSI and hourly MACD are overbought also brings about the possibility of a correction/consolidation. It'll take a brave soul to short the markets in light of the past four days. Nevertheless, we leave you with the chart.