2 Dec 2015 - Price Finds Support Even With Tragedy

The hourly wedge that has been forming since the flash crash is still showing as support that price is acknowledging.  As with France the day or weekend after, most traders expected a drop in the market, but the reality was far from expectations and markets rallied.  Will we see the same thing play out here tomorrow?

Perhaps...  But in the meantime the 60 min. divergence mentioned yesterday seems to have reversed price today, or we can just call it a coincidence.  There is however another possible negative divergence that we need to watch, and that is in the daily chart.  This will only become one if prices exceed the early Nov. highs while momentum stays relatively weak.  Of course this would assume price would rally in the near term.  This scenario might not happen at all and the indicators will be the only one to follow to be on the right side of the trade.

The SPX is still holding major 200 day supports as well as the pattern mentioned above.

SEN: Bearish
ST: UP
PA: DOWN

RESULT: Bullish in a bearish market...