SPX S&P 500 Monthly Chart; Overbot; Double -Top; Negative Divergence Developing; Upper Band Violation

The SPX monthly chart is nasty laying out the story for an epic long-term stock market top ahead. Price is coming up for a double-top, or M top. The high currently is 2830. The all-time record high is 2873. The red lines for the indicators are universally negatively sloping but technically are not in negative divergence unless price prints the matching high which is another 43 handles.

Keystone has been explaining the long-term topping process for the last few months waiting for the charts to provide the official signal. It is very near. The COMPQ, NDX and RUT display long and strong MACD lines which will need to play out for a couple-three months to create the epic multi-month and multi-year tops. It is very likely that the stock market is in its final throes and will top out over the next one to four months, say now into January. It may come sooner rather than later.

The upper band violation demands that price show respect to the middle band, at a minimum, which is also the 20-month MA at 2574, and the lower band at 2268 is also on the table. It would not be a surprise in the least that the SPX would be at 2500-2600 in January-May. The blue circles show that about two years occurred before price showed respect to the middle band and we are currently playing out a similar pattern.

The SPX is overbot and price is above the moving averages requiring a mean reversion going forward. The ADX purple boxes show that the late 2008-2009 crash was a strong downtrend. The stock market was saved by former Fed Chairman Bernanke that performed the bidding of the wealthy. The stock market had to be saved to protect the wealthy Americans so he stepped in to stop the slide in March 2009 with QE1. The strong downtrend was stopped and the rich danced with glee as their losses recovered and the stock market rallies for years hence rewarding those with huge stock portfolios. America is a corrupt crony capitalism system there is nothing that can be done about that.

The upside trend was strong in 2014 into early 2015, but in May 2015 Keystone called the long-term top, which occurred, and the ADX retreated verifying the loss of the strong upward trend. But alas, the filthy central bankers stepped in again to save the day creating that Tweezer Bottom in early 2016. The central bankers are the market. If you do not understand this simple fact, you simply are not paying attention.

The strong upside trend reappears late last year after the ADX rallies higher and the strong upside trend remains. This will likely roll over as the next few months play out. The end game is coming, all you can do is keep monitoring the charts. Focus on that MACD line. If the S&P 500 prints a new all-time high above 2873, and the MACD line remains negatively diverged as compared to the January high, it is over for the stock market and these current highs will likely not be seen for years to come. In 2020 and 2021, or sooner, it is very realistic that the SPX will be in the 1800-2200 range. 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.