SPX 2-Hour Chart Negative Divergence Developing

The bears receive a major blow today. Copper was the last piece of the puzzle needed by bulls and the move higher in the other yellow metal sends stocks sharply higher. Watch JJC 37.60 as a market bull-bear gauge with price running away to the upside at 37.94. The market bears are beaten mercilessly. There is no near-term hope for bears (the next couple days) unless copper weakens.

Price continues higher in the upward-sloping red channel. The indicators are negatively diverged across the last couple weeks but note the very short term strength (green lines). The RSI and MACD line want to see another higher high in price before they will commit to firm negative divergence in the VST. Thus, at least one to three more candlesticks are likely needed for the chart to set up for the bears; this would be two to six hours of trading time which is today's session and into early Monday.

Considering the Fed joy and Yellen Rally, where she now cheer leads stocks telling Uncle Ned to take his entire social security check and buy dividend stocks, the bulls are going to try and keep the market buoyant into the weekend and will be definitely able to do so with JJC above 37.60. If the bears can turn copper negative they can create the SPX market top before the closing bell. Today is Quadruple Witching so there will be wild crazy volume in the final fifteen minutes which may create an overall wild ride for the last hour of trading today. 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 10:30 AM: The VIX prints another near 8-year low at 10.34. The TRIN dropped to 0.32. Welll, doggies, that is a low print for TRIN and is another tool that says the markets are topping in here. However, in the here and now, in this instant, the low volatility and TRIN are a one-two punch into the bear's gut. Interestingly, the bears pump the TRIN up to the neutral 1.00 number right now so they are not going down without a fight.

Note Added 9:45 AM on 6/21/14: The bulls run higher fueled by copper. The SPX prints a new all-time intraday high at 1963.91 and new all-time closing high at 1962.87. The SPX 2-hour chart is negatively diverged across all indicators except for the MACD line over the very near term (the last four hours of trading), therefore, a spank down would be expected as discussed above but price likely wants to tease at the highs again at 1963-1965 which should create universal neggie d and a more extended down move. It may take one to three candlesticks for the MACD line to negatively diverge so equities should top out either Monday morning or Monday afternoon. The 1955-ish S/R is a logical initial downside target. The bears should have a turn at bat next week. The bulls are cruising on a euphoric ride of complacent glory.