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

Bullish traders are tripping over each other today buying stocks with reckless abandon. In these final minutes it wold be wise to bring on some index shorts. The chart was already in complete negative divergence (maroon lines) so there was no reason for price to come back up but the happy talk news bites take precedence. The chart adjusts higher to the potential agreement by Congress that will avert a government shutdown and President Trump is talking-up the US-China trade talks.

The indicators are in neggie d again (red lines) with the higher high in price and the stochastics and RSI are/were overbot also agreeable to a pullback. The SPX is at 2742 trying to break up through the 2743-2747 resistance zone. HOD 2748.19. The 10-month MA is 2747. The 200-day MA is 2743. The 100-day MA is 2699. 

The SPX is above the key 12-month MA at 2730, so the stock market is now in a cyclical bull market pattern (give this a few days or week or two to see if it sticks).

The 50-week MA is 2731 so the SPX may want to come down to back kiss this critical 2730-2731 level again and make a bounce or die decision at this pivot point. It is the decider of whether equities are in a cyclical bull or cyclical bear market; as of today a cyclical bull.

The SPX did not quite tag the upper standard deviation band at 2753 so that must be respected. Regardless, the middle band, also the 20 MA, is in play at 2716. Also, there is the tiniest sliver of bull juice remaining with the MACD line and money flow. These fumes may provide a last hurrah for the SPX after tomorrow's (Wednesday) opening bell where price may tag that upper band. Stocks are usually bullish from Tuesday into Wednesday during OpEx week.

The low CPC and CPCE put/call ratios and elevated NYMO have yet to reconcile so a drop of from 40 to 100 handles in the S&P 500 looms near. This pending spankdown in the 2-hour chart above should provide the start of the downside and then the negativity may feed on itself.

The SPX should top out now in this 2-hour time frame. The only thing that can change the game is happy talk from President Trump, the Federal Reserve or other global central bankers. The central bankers are the market. Conversely, if negative news occurs, such as a failure in the US-China trade talks, that would be a catalyst that would immediately spank the pending downside into high gear. 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.