SPX S&P 500 2-Hour Chart; New All-Time Highs; Overbot; Negative Divergence Developing

The bulls keep milking the upside momentum for all its worth. Stocks print more all-time highs. The SPX 2259.80 is the highest number in market history. From the last 2-hour chart, the idea was to wait for the neggie d to completely lock-in to know the top was in place but that MACD line remains long and strong sloping higher. The other indicators are all negatively diverged and want price to take a rest and retreat now. After any pullback in this 2-hour time frame, the MACD wants another matching or higher high for price so the SPX price should come back up again. At that time if the MACD rolls over negatively, the top is in.

So that should take a couple candlesticks or less for the top so anytime Monday morning going into lunchtime, maybe early afternoon at the latest. The only thing that could stop the near-term top and downside is If there is positive news, say from the Italian bank problem, that may create more market joy and the charts will have to adjust again.

The daily chart still has upside juice but is agreeable to a pull back now in line with the 2-hour chart above. So the expectation would be for market selling for a day or two then a rally back up to the highs again for a day or two then potential roll over to the downside. Stocks are usually bullish into the Fed meetings; and the rate decision meeting is on Wednesday. Everything is going the  bulls way these days. The contrarian indicators have not been resolved as yet and the put/calls and NYMO keep hinting at a near-term top.

Interestingly, if there was ever a perfect set up for a market 'event' it would be this weekend. Stocks are at all-time record highs. Complacency and fearlessness is rampant. Traders are searching for "Dow 20K" hats that they say is guaranteed to happen next week. Everything is coming up roses. The euphoria and optimism is so thick and rich that you can cut it and eat it, like a slice of cake. At the same time, European officials are meeting this weekend to find solutions to the growing Italian bank problem. They wipe beads of sweat from their foreheads worried that Italy, now the sick man of Europe, may create global contagion. However, bad news is ignored and everyone continues partying like its 1999. Perhaps markets need to bring everyone back down to earth on Monday.

Price still needs to back kiss  the middle band, at 2227, and rising, at a minimum, and the lower band at 2186, and rising, is on the table. There is a lot of momentum in the markets with people throwing money at equities. Aunt Hazel, that kept her life savings in a coffee can hidden in the garden, invested the entire amount in the stock market last week. Stocks should drop after the MACD line above rolls over which is at anytime in the minutes or hours ahead. 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.