SPX S&P 500 Daily Chart; S&P 500 Prints All-Time Record Highs; Overbot; Rising Wedge; Negative Divergence Developing; Upper Band Violation

The bulls are unstoppable. The momentum is fierce. The MACD line keeps sloping higher and has not yet turned into negative divergence. As that plays out, the RSI and histogram poke higher now also wanting a higher high in price after any pullback. The stochastics and money flow remain negatively diverged wanting the S&P 500 to take a well-deserved rest.

Ditto the rising red wedge which is a bearish chart pattern. Ditto the overbot levels for RSI and stochastics. Price continues to pierce the upper band requiring a trip to the middle band, at 2707, and rising, at a minimum. The low CPC and CPCE put/call ratios are screaming complacency in the stock market signaling a significant stock market near-term high at anytime in the coming days.

Comically, the bullish momentum carries equities higher. It is frenzy. The move is parabolic this year. Interestingly, the utilities sector, UTIL, has now crashed -12.5% over the last six weeks.

Yesterday, as the SPX printed more record highs the VIX had stopped moving lower. Today, as stocks make more record highs, the VIX is actually moving higher now at 10.12. There are very strange and perhaps dangerous things taking place under the surface.

You know the drill. The daily chart will not top out until that MACD line goes neggie d. So probably one jog move, down one day, then up one day, should flatten and roll over the RSI and histogram but there may be one more jog needed, down one day, then up one day, for the MACD line to go neggie d and identify the top.

The put/call ratios are calling for a near-term top any day forward and the chart above is setting up for a potential top over the next 2 to 5 days in the daily time frame. The drop that will likely occur due to the complacency may be substantial so you must take it seriously. A couple weeks from now the SPX may be a 100 points lower. After today, stocks will not trade again until Tuesday due to the Martin Luther King, Jr, Day holiday.

Stocks are typically buoyant the two days before a three-day holiday weekend and this seasonality carries equities higher yesterday and today. This market action is historic and rare. It may be talked about for years to come. 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.