My prior USDJPY post noted a break below a tight double bottom could be bearish. The SPX has a similar situation, a break below 3198.60 could open the door for more downside action.
My prior SPX post noted a break below the lower rising trend line could be bearish. Usually, when this happens the prior support trend line then becomes resistance, which has happened. If the SPX moves back above this trend line it could be bullish.
Two - hour Stochastic has just recorded a bearish crossover in neutral territory. This cross implies two - hour Stochastic could soon travel down to the oversold zone.
If the 2hr hits oversold, that could trigger a bounce right or do you mean that the 2hr has to be oversold to have a meaningful pullback? Thank you!
markrivest
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@manifresca,
Whenever Stochastic gets into the oversold zone, regardless of time scale you need to be on alert for a bottom.
Note what happened on July 26th - when the 2 - hour Stochastic was deep into the oversold zone.