SPX S&P 500 Monthly Chart; Negative Divergence in Play Identifying a Major Multi-Month and Multi-Year Stock Market Top; President Trump Bashes Federal Reserve Setting Up Chairman Powell as the Future Fall-Guy and Scapegoat

On Monday, 8/20/18, in the afternoon, at 3:40 PM with the SPX at 2860, stocks begin sliding sharply lower towards the closing bell. The S&P 500 drops to 2856 so the Whitehouse steps in with dovish comments. In a Reuters interview, President Trump says he is “not thrilled” with Powell raising rates. Trump proclaims, “I should be given some help by the Fed.” USD 95.82. The dollar falls to session lows after Trump’s comments. The central bankers, and now the Whitehouse, are the markets.

It is rich that President Trump brags daily about the stock market record highs, the +4% GDP growth and millions of jobs created but then opines that he needs help from the Fed. Which is it, mister president? Is the economy healthy or is is sick? Trump says he plans to continue criticizing the Federal Reserve if they continue raising rates. Stocks stop the late-day slide dead in their tracks with the SPX reversing course higher to 2857 as the closing bell rings.

Trump is likely setting up the Federal Reserve to take the fall if the stock market trends lower over the next couple years. This is the key reason behind the Trump comments. No doubt the Whitehouse has chart technicians providing market commentary to the president's advisors and henchmen Mnuchin, Ross and Kudlow on a daily basis.

The SPX monthly chart displays negative divergence across all its key indicators (RSI, MACD, histogram, stochastics, money flow) as price comes up to match the 1/26/18 all-time record high at 2872.87 (price needs to touch the 2873-ish to officially confirm the negative divergence with the chart indicators but let's say it is close enough for government work).

It is very likely that the stock market is printing a major long-term top over the coming weeks a la October 2007 and May 2015. If so, after the SPX drops -10%, -20% and even more, Trump will proclaim that he created the strongest economic and market boom in America’s history but the Fed ruined it by hiking rates. Powell will be used as a scapegoat. This is the way the game is played on the corrupt and filthy streets of Washington, DC, and Wall Street.

US stocks finish the day in rally mode. The S&P 500 finishes up 7 points, +0.2%, at 2857. The SPX is within 1% of the all-time record high at 2872.87. The upper standard deviation band was violated a few months ago so the middle band at 2575, and rising, is firmly on the table as an initial downside target on the monthly basis. As the background color of the chart shows, the sun is setting on the stock market.

The monthly charts will print the final price for the month of August on Friday, 8/31/18, and a new candlestick will begin for the month of September on Tuesday, 9//4/18 (after Labor Day). Keystone can post the monthly charts for the major indexes and key individual stocks at that time and explain the situation if there is interest shown by the hundreds of thousands of monthly global users of the KE Stone blog sites. Otherwise, you can figure it out on your own. 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.