SPX S&P 500 Monthly Chart; Overbot; Negative Divergence

The SPX meanders along with the non-stop support of global central bankers. The Trump election win creates more stock market upside with the RUT (Russell 2000 small caps), INDU and DJI (Dow Jones Industrials) and COMPQ (Nasdaq Composite) printing new all-time record highs and the S&P 500 is only a whisker away. The all-time record high for SPX is 2193.81 and all-time closing high is 2190.15 from 8/15/16. The SPX begins the new week at 2182.

The monthly chart shows the overbot conditions, rising wedge and neggie d (red lines) in early 2015 that Keystone highlighted back then and used to call the multi-month top in the stock market. But the central bankers are powerful, printing money like madmen to enrich themselves and the privileged class that own large stock portfolios, and the stock market recovers to print new highs this year. The purple circles show a couple of Tweezer Bottoms.

Volume continues to trail off over time. The 10 and 12 MA's are extremely important. The 10-month MA is at 2107 and serves as an early warning signal of major trouble ahead. Many algo's program this into models. The 12- month MA is at 2088; Keystone calls this the clilff. Under 2088 and all hope is lost for the stock market. Price came down to test this key level and the 200-day MA 11 days ago, and bounced. The bulls are happy with the SPX nearly 100 handles above the cliff.

The SPX is at matching highs now. Looking at the indicators, they are negatively diverged in the couple-month time frame and over the longer couple-year time frame. Stochastics are overbot. The MACD cross is a sliver negative with the black line under the purple line. The chart is not enthusiastic of more upside. The chart favors a lower path ahead on the monthly basis. 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.