SPX S&P 500 2-Hour and Daily Charts; Overbot; Negative Divergence; SPX Closing High for 2023 at 4294; Triple-Top Requires Resolution

The red lines show the SPX 2-hour and daily charts topping out with neggie d. On the 2-hour, you see the prior high came with the long and strong MACD (green line) so you knew one more high in price would come. It does and at that price high all the indicators are negatively diverged marking the top. The rise in SPX price today is not needed since the chart already topped out (price would not be expected to come up for another high on the hourly basis).

The daily chart is weak but of course the Fed wild card is on tap next Wednesday and inflation data Tuesday and Wednesday. Stocks usually float higher the 2 days in front of a Fed meeting next week. So perhaps some sogginess is the order of the day until we move into the Fed meeting next week.

Remember, the low put/calls have not yet resolved so a pullback is expected to begin anytime for stocks. Keystone sold some longs such as CGEN and EDIT and is bringing on index inverse ETF's today (short plays). 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 12:19 PM EST: The SPX pops higher to 4287 the HOD. Traders are tripping over each other to buy stocks afraid of missing out on the rally party. Woo-hoo. The music turns louder at the bull orgy with price popping to 4288. We shall see if she can remain buoyant, or not. Let it drop as Sports Team sings.

Note Added 6:53 PM EST: Whoopie. The bulls pump the SPX to a new closing high for 2023 at 4293.93. The high for the year is 4299.28 on 6/5/23 (Monday). The bulls are high-fiving and patting each other on the backs amazed at how smart they are to be leveraged long now betting Junior's graduation money on the market. The guy on television said stocks are Outtasite and a recession is off the table. What's he smoking? The above analysis should be same-o, same-o regardless of the rally. Bring up the SPX daily chart, you can see the candlestick closes at the new high for the year. Today is 5 days of matching or higher prices so the chart indicators can be assessed for negative divergence and all are sloping lower just as the above chart shows. The MACD is trying to muster up a day or so of remaining strength but is clearly neggie d since the April and February tops. Plug in the moving averages for the 20-day, 50, 100, 150 and 200 and the moving average ribbon is showing price in the stratosphere above the 20-day MA above the 50 MA above the 100 above the 150 above the 200 requiring a mean reversion lower. Bring up the SPX 2-hour chart to see the triple-top. The old saying is that 'triple-top's don't exist' because they typically resolve higher and only end up as two highs with price taking off bigtime higher to Paradise as John Prine sings. In truth, triple-top's are a 50-50 proposition sometimes they hold and spank price lower and other times price rockets higher nullifying the triple-top. It will be interesting to see how price resolves; it has to make a bounce or die decision now. The three highs this week are 4299, 4299 and 4298 today. Price comes up for the matching triple high this week and the chart indicators remain neggie d. Note the selling volume candles from Wednesday, when stocks fell, are taller than the buying volume candlesticks today, in the same price range (bearish). This will be fun to watch. What do you think? Is she ready to jump off the cliff overnight, or, will tomorrow be another bull orgy into the weekend? Friday may be an interesting day. Stocks will likely remain choppy until Pope Powell brings the tablets down from On High next week. Before then, perhaps we see some excitement tomorrow and Monday. Take a deep breath. Maybe One Last Breath.