SPX 1230 Is Likely Resistance Again

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So far the action in the S&P since the last post has unfolded about exactly like the projection I laid out. Now looking at the hourly chart above, notice that the price is basically at the recent high but the MACD is lower. This is setting up a potential bearish divergence on a price breakout. That is ideal to see before a downside reversal, so the indicators are starting to warn that the advance is losing steam.

Based on the ideal projection of a rally of this form, it would project to SPX 1229-1230 which again is right at the heart of a major longer term harmonic resistance zone. The ideal time for a high to occur would be tomorrow morning. Basically I would like to see a brief push up through the upper blue wedge line and then a price reversal with a bearish MACD cross and -DI cross above +DI on the DMI system to initiate any new trade.

The next FOMC meeting is tomorrow, so we may see the action settle down considerably until tomorrow afternoon.