SPX S&P 500 2-Hour Chart; Negative Divergence Developing

The CPC and CPCE put/call ratio charts were posted on the weekend. Scroll back to take a look. Both put/calls are uber low signaling rampant complacency, thus, a near-term stock market top is at hand anytime forward. The idea is to look for this near-term top with the 2-hour chart.

Right away, you see that long and strong MACD line so you know that the SPX price will likely want to come back up again for another higher high. The stochastics are both overbot and negatively diverged so they are cooked and prefer to see the SPX sell off. Ditto the histogram. The money flow is like the MACD line, long and strong. The jury is out for the RSI but it appears that it may want to sneak higher. Thus, the SPX is likely 2 to 4 candlesticks away from topping out (when the MACD line, money flow and RSI are neggie d). That would be 4 to 8 hours which is Wednesday. US markets are closed tomorrow for New Year's Day.

Price has ventured higher above the middle band so the SPX may seek that upper band at 2544 (purple box). This would provide time for the MACD, money flow and RSI to top out and form neggie d. It does not appear that the SPX 2-hour chart is ready to give up the ghost just yet. Keep watching for when all the indicators are neggie d and then short this near-term top hard. The complacency says the move down may be sharp.

Utilities remain buoyant which provides support for the stock market. If UTIL loses the 709 level, now at 713, there will be mayhem and trouble. Bulls need the utes to remain happy and for copper to rally. Copper was higher overnight into today's early trading but then rolled over negative.

Stay focused on that MACD line on the SPX 2-hour chart. When the SPX prints a new candlestick high and the MACD line then slopes negatively, neggie d, the near-term top is in. 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.