SPX S&P 500 2-Hour Chart; Overbot; Negative Divergence Developing; Rising Wedge; Upper Band Violation

The bulls are pumping stocks higher to begin the new week of trading. Uncle PBOC and Auntie Fed stuffed money into the bull's pockets on Friday so they are buying stocks with this central banker easy money. The NYMO says a near-term high is near. Ditto the CPC and CPCE put/calls that likely need to see some market selling ahead. Thus, the idea would be to look for this near-term top.

The 2-hour chart had started to pull back last week on Wednesday and Thursday, but the PBOC and Fed rode to the rescue saving their stock markets to protect the wealthy class (that own huge stock portfolios). Stocks rocket-launched on the central banker largess on Friday. Price prints a higher high with the RSI and MACD remaining long and strong.

The RSI and MACD provide more upside juice for the SPX which should print another higher high after any pull back in this 2-hour candlestick time frame. Thus, price may jog lower, then higher again, then lower, then higher, at this time the RSI and MACD should be neggie d, so the top would be in. So that is say, 2 to 4 candlesticks of time or 4 to 8 hours for the top to appear. So the stock market may top out this afternoon or tomorrow morning. Keystone will bring on index shorts going forward while watching the MACD and RSI. Once the downside occurs, the NYMO and put/call negativity may spank prices sharply lower.

At that time, the SPX weekly chart may finally set up properly and a multi-week rally will begin. This scenario would also fit the narrative where everyone has gotten bullish over the last few days buying stocks at the ask. A flush lower will discourage these euphoric folks and they will sell and swear off buying stocks ever again. That is when the SPX sustainable multi-week rally will likely begin say next week some time.

Price violates the upper band so the middle band at 2500 is on the table. As shorts are brought on now, try to place the short when the TICK machine is +900 or higher especially above +1000. Wow, look at that. The TICK just printed a +1200 about 20 minutes ago (uber bullish joy). For the VST trader, it is likely prudent to ditch your short-term longs by the closing bell and bring on shorts to try and ride the coming down move in the NYMO. 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.