SPX S&P 500 Daily Chart; Overbot; Rising Wedge; Negative Divergence Developing; Upper Band Violation

And the band plays on..... Same-o stuff. As previously mentioned, the jog move is occurring; one day down and today up. S&P futures are up +11 points about one hour before the regular US trading session begins. President Trump announces more happy talk about the US-China trade negotiations so the futures pop overnight. The big rally this year is fueled by an end to the government shutdown drama, the happy US-China trade talk and global central banker largess; a triumpherant of bullish joy. 

Remember, you have to wait for universal neggie d across all indicators to know the top is in. For the last price high on Wednesday, the indicators are in negative divergence (sloping downward) except for the RSI and MACD line (green lines). Thus, the SPX wants to come back up one more time after any day or two selloff. Hence, the futures are higher today after yesterday's selloff. The high this week is at 2782-2790 so any price move into this area would be good enough to qualify as a matching or higher high.

As long as all indicators, including the RSI and MACD, then turn neggie d (below the thin red line in the right margin) with the new price high, then the top is in for the daily time frame. It appears that you do not want to stay long through the weekend. The stock market will be primed to head lower early next week. Of course, as always, the caveat is more happy trade talk which may create another goose and extend the top for another day or two. The rising wedge pattern and overbot RSI and stochastics are agreeable to a pullback. The uber complacency in the CPC and CPCE put/calls need to rectify (stocks need to sell off to erase the euphoric joy currently in markets).

Stocks should head lower for a few days but the SPX weekly chart remains long and strong so price will likely recover back up to the current highs say a week or three out in early or mid-March. The SPX weekly chart will likely top out in mid to late March and then create a multi-week pullback in the stock market. It will depend on how things develop.

The 150-day MA at 2748 is highlighted above (purple box). The slope of the 150 is a key Keystone cyclical signal for any stock or index. That bugger is dead flat. Note how it fell due to the Q4 selloff sending the stock market into a cyclical bear market pattern that remains. The slope of the 150 is uber important. If it begins sloping up, the stock market will return to a cyclical bull market pattern. If the 150 rolls over to the downside, Katy bar the door, the stock market will be poised to take its next big leg lower. By definition, the 150 will curl higher if price remains above 2748 but will curl lower if price drops below 2748.

The SPX desperately needs to drop lower and show respect to the 20-day MA at 2718 and rising. 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.