SPX S&P 500 2-Hour Chart; Oversold; Falling Wedge; Positive Divergence; Lower Band Violation

Here is another update of the 2-hour that has been in focus the last three days. The uber high CPC and CPCE put/calls, uber low NYMO and NYAD, and elevated VIX, all verify the rampant fear and panic in markets. There is blood in the streets so it is likely prudent to go long; grab and buy those shares from the folks screaming bloody murder running for the exits.

The 2-hour chart has been set up with possie d this week but the news bites hammer it lower and the chart has to reset to price-in the news bites. Bond king Jeff Gundlach sunk stocks on Monday, Fed Chairman Powell stabbed equities on Wednesday and President Trump is harpooning the markets yesterday and today. Keystone posted a chart showing this week's drama in relation to the news events; scroll back a few charts and you should find it.

The positive divergence should launch price. Ditto the oversold conditions and falling wedge. The SPX violated the lower band so that middle band at 2539, and dropping, is on the table. It is all good for the bulls for a recovery rally to begin. The government shutdown drama plays out today, however, and the politicians have to play their baby games.

Considering the uber high CPC and CPCE put/call ratios, do not be surprised if there are some wildly higher days ahead providing bull joy. With the set up in the CPC, CPCE, VIX, NYMO, NYAD and SPX above, a big relief rally should begin. It is all in President Trump's hands. Bulls need Donny to put down the harpoon gun. 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.

Note Added 10:16 AM EST: Holy smokes. No sooner than the above chart was posted and look at the tape. Wow. it is a rocket launch. President Trump says the democrats are responsible for a government shutdown reversing what he said the other day that he would take full responsibility. That is hysterically funny. But instead of weakness, stocks catapult higher. Fed's Williams says the Fed will adjust its views based on the data and outlook. The Fed is performing a do-over to smooth-over Powell's mistake. The Dow is up 382 points. The SPX gains 36 poins, +1.5%, to 2502. Wow. Those elevated put/calls tell you the stock market is wound as tight as a spring and big upside should be expected. The day has to play out to see what Donny has in mind with the government shutdown. Williams upstages Donny.

Note Added 11:52 AM EST: Move along, move along, nothing to see here, move along. What goes up must come down. The Williams' joy dissipates and the Trump shutdown malaise takes over. The SPX slips negative let's call it flat at 2469 up a couple points. The shutdown drama is a dark cloud hanging over the markets. Traders wait and watch how the day plays out.

Note Added 12:10 PM EST: As President Trump meets with republicans at the Whitehouse, stocks collapse. The SPX drops 16 points, -0.666%, to 2451. VIX 27.666. The bulls are running for their lives. The SPX is testing its low from yesterday afternoon, however, the VIX is not testing the prior highs; a price divergence. The bulls beg King Trump to stop harpooning the markets with the government shutdown drama especially since the charts are lined up ready to rally.

Note Added 12:22 PM EST: President Trump says the chances for a shutdown are "pretty good." The SPX is down 19 points, -0.8% to 2448. The bulls begin throwing the baby, bathwater and kitchen sink out the window again.

Note Added Saturday Morning, 12/22/18: President Trump harpoons the stock market on Thursday and Friday. The US government is currently in a partial shutdown which creates angst in global markets. Washington, DC, is dysfunctional. Merry Christmas. The S&P 500 crashes 51 points on Friday, -2.1%, to 2416. The LOD is at 2408 a smidgeon from a 2.3K-handle. The SPX collapses -7.1% this week the worst week in a couple decades. December is the worst month for the stock market since the 1930's and the Great Depression. The Russell 2000, RUT, has retraced back to prices in November 2016 when President Trump was elected. If you bot small caps after Trump was elected, in that frenzied run-up back then, you are either flat or underwater on the trade. Traders and investors appear willing to sell off positions and get out of the stock market, and stay out, until the new year begins. There is a buyer's strike. The elevated CPC and CPCE put/calls are screaming buy, buy, buy, but King Trump is forcing his subjects into a shutdown. Wow. The NYMO plummets to -100 not seen since February; this uber low McClellan Oscillator is screaming buy, buy, buy!.