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

The SPX is rallying off the stimulus talk. Traders remain uber complacent not believing that any significant selloff will ever occur again. Price prints a higher high going back to mid-September so those indicators can be studied for divergences. The red lines show negative divergence in play that wants to spank price lower. The MACD, however, still has a bit of fuel in the tank (green line) so price will want to come back up after a move lower. A jog move of one candlestick lower then one back up to matching or higher highs is in order so the MACD can go neggie d. That will be the top. Thus, 2 candlesticks is 2 to 4 hours of time. The chart will print the next candlesticks at noon, then at 2 PM. The chart should top out, say, perhaps during the last hour or two of trading today, if not, then tomorrow.

The stochastics are overbot agreeable to a pullback but the RSI is not yet overbot so keep an eye on that. If that flat RSI turns slightly higher that will extend the top another candlestick or two. We are close. The top is in when all indicators are lined up with neggie d. The rising red wedge is a bearish pattern and the price moves lower can be quite dramatic. 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.

Note Added 3:39 PM EST: Markets are getting jerked around by the stimulus political game. The SPX is at the highs up 26 points, +0.8%, to 3446. The indicators are the same as this morning, in neggie d except for the MACD line. The current candlestick for the 2 PM to 4 PM slot prints a higher high in price but that MACD line remains a smidgeon higher. Bears need to jam it down a touch and the top will be in, otherwise, tomorrow morning. Of course, some type of happy talk news could extend the upside joy. Whoa, check that. a little slippage back down to the 3443 palindrome. Price has been sticky at that number. VIX drops below 27.15-ish creating the upside joy.

Note Added 3:45 PM EST: SPX 3445. HOD 3445.90. VIX 26.53. Fed Chairman Powell pulled out the jackboots and has Uncle Vix pinned under the desk with his foot on his throat. The Fed must pump the stock market higher to please its wealthy elite masters.

Note Added 3:50 PM EST: Jammin' that VIX lower now at 26.46. SPX 3444. The stock market is the town drunkard dancing joyfully with a cigarette in one hand and an empty bottle of whiskey in the other but he does not realize he is on the edge of a 300 foot (91 m) cliff.

Note Added 3:55 PM EST: SPX 3445. VIX 26.41. Wheeee! Whoopie! The SPX punches out a new HOD up at 3446.77. The Fed wine is flowing like water. The chairman kicks Uncle Vix with his jackboot and warns him to stay low and do not ever think of getting up again.

Note Added 4:01 PM EST: The SPX finishes at 3447.06. HOD 3447.28. VIX 26.36. Volatility was the key. The VIX drops so stocks pop. Simply watch VIX 27.15-ish as the key bull-bear line in the sand for Friday. The trading floor is full of Shiny Happy People buying stocks at the ask with reckless abandon. Timmy Trader took his clients money and put it into the quintuple 5x leveraged tech fund QQQQQ. Joking aside, the top may be in now, if so, you will see it in the futures overnight. If stocks begin Friday morning with a matching or higher price high, that is good for bears. Check the MACD line to see if it is flat or sloping negatively to lock in the neggie d and the top would be in out of the gate tomorrow morning. If stocks keep printing matching or higher highs, and the MACD is still pointing up, you have to allow for a jog move (down-up) for the MACD to set up with neggie d which is 2 to 4 hours since that is 2 candlesticks. That places the top between 9:30 AM EST and 1:30 PM EST tomorrow. It will be interesting to see if something negative happens overnight to start the negativity, or, if happy stimulus or vaccine talk tries to pump stocks further. Are you ready for a Black Friday, or perhaps a Black Monday? The top is in when that MACD line goes neggie d on the SPX 2-hour chart. Note that the RSI remains flat from price high to price high which is neggie d so it continues to want to see price die like the other indicators. The MACD is the last one that needs to fall into place with neggie d for the bears to growl.