SPX S&P 500 2-Hour Chart; Rising Wedge; Overbot; Negative Divergence; Upper Band Violation; Potential New All-Time Highs

We have been watching the progression of the 2-hour chart this week so may as well take another look. Stocks float higher as the Trump Rally continues. Financials, retail stocks and homebuilders create upside joy for Thursday. Going into and during a FOMC meeting or an appearance by Fed Chair Yellen before Congress typically results in buoyancy in stocks and today was no different.

The low CPCE put/call ratio says a near-term top is at hand. The NYMO is elevated. So the idea this week has been to try and figure out where the near-term top is at for stocks. The red lines show the first negative divergence spankdown but the MACD remained long and strong wanting price to come back up one more time, and it does. This created the blue lines with a higher high in price and neggie d which creates the second spank down. Price had no reason to move higher again but it did anyway; chalk it up to the concepts in the first paragraph providing lift.

So currently the maroon lines are in play with price at a higher high, on the verge of all-time highs. The maroon lines for the indicators show neggie d remaining for all the indicators. Stoch's are overbot. The rising wedge is bearish. Price has violated the upper band so the middle band at 2171 and rising is in play. It is all systems go for the bears. The lower bans at 2153 is also in play.

While the chart is bearish, the S&P 500 is on the verge of new all-time record new highs. The S&P 500 all-time record high is 2193.81 and all-time closing high at 2190.15 from 8/15/16. The SPX will begin the Friday session at 2187. 

Price should pull back (due to the neggie d) to take a much needed rest after the near two-week rally. Next week is Thanksgiving so markets are closed on Thursday. Friday is a short session and that day is typically bullish. Stocks also are typically bullish moving into a holiday. On Tuesday, 11/29/16, a Bradley turn date occurs so markets are in a window, especially from 11/22 through 12/6 for a trend change or a rapid acceleration in the current trend. A new moon peaks on 11/29/16 and stocks are typically bearish moving through the new moon. EOM is Wednesday, 11/30/16. When a month is typically up most of the way, like November, the last few days tend to end weak. The new month of December may bring in new money and create buoyancy.

Thus, mixing the chart analysis and seasonality factors together and sprinkling some magic dust on top, stocks should move lower from here the 2171 and other S/R levels previously mentioned are in play. Stocks may be weak from now through early next week then some buoyancy into the Thanksgiving holiday, then an up day for the short Friday session on 11/25/16, then weakness to end the month 11/28 through 11/30, then buoyancy on 12/1 and 12/2. Of course news bites will influence stocks. Keystone brought on index short positions today for VST trading. 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.