SPX Weekly Chart

The negative divergence (red lines) has been weakening price for a roll over but the central bankers keep sweeping in to save the day dropping money from helicopters and pumping the stock market higher. Over the multi-month period, negative divergence remains across all indicators; price is out of gas. However, in the nearer term, due to the central banker goosing, momentum creates momentum. The stochastics and RSI (green lines) likely want to see another higher high after any pull back in the weekly time frame so the bears will likely have to be patient another couple weeks for the top. The multi-month neggie d should re-exert itself before the month ends.

The lower standard deviation band was violated severely with the 1820 low three weeks ago. The indicators were weak and bleak so lower lows would have been expected after any bounce and the middle band at 1970-ish was a good candidate. Price screams up through the middle band and is only about 10 points from the upper band at 2044, which would once again put the middle band in play. The central bankers have a room full of chartists so they knew the markets were falling down the rabbit hole and serious global central banker intervention was needed to save the day; which occurred.

The ADX (pink circles) show how the upside trend in stocks is running out of gas, in fact the upward trend is less strong than last year despite the higher highs in the stock market. Over the last few months note how each high in the stock market is occurring with a lower ADX showing how the upward trend is petering out and running out of gas. The three up weeks' volume does not surpass the prior two week's of down volume.

The expectation is for price to roll over in November topping in this area 2030-2050. This would be in agreement with the SPX monthly chart previously posted and may lead to a mutli-year top for the stock market a la the 2000 and 2007 market tops. The central banker money is powerful but the Keynesian's are receiving less and less oomph with each liquidity injection. Global central bankers are acting in collusion throwing everything including the kitchen sink at the stock market to keep it elevated. 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.