SPX S&P 500 2-Hour Chart; New All-Time High; Overbot; Negative Divergence; Upper Band Violation

Now just a doggone moment. The 2-hour was out of gas but managed to come up for one more high. Chalk it up to the little bump in the RSI that managed to squeeze out that last bit of oomph. The Fed has been cheerleading for a rate hike for March with all their might but traders are not buying what the FOMC is selling. No one expects a rate hike until June. Perhaps stocks are receiving some buoyancy since the central bankers will remain accomodative for another four months at the same time that Trump keeps tossing out tall promises like candy.

The red rising wedge shows the price top with neggie d across all indicators. This spurt higher this morning is a new record high for the SPX at 2368.26 and with the higher high in price, the negative divergence remains across all indicators (maroon lines). Price does not have anymore gusto available to move higher in this 2-hour time frame. Price will need to touch the middle band at 2354 and rising since the upper band has been violated. The lower band at 2337 and rising is also in play. The MACD line prints a negative cross with its signal line which is bearish.

If bearish, what you want to see is lower lows for the indicators. The RSI is sneaking out a lower low. That will create a weak and bleak vibe and send stocks lower. Bulls will try to keep stocks elevated by sending President Trump, or Fed Chair Yellen, to a microphone where they can espouse more promises of rainbows, joy and higher stocks forever. 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.