SPX S&P 500 2-Hour Chart; S&P 500 Prints New All-Time Record High at 3258.14; Overbot; Negative Divergence; Upper Band Violation; Price Extended; US Assassinates Top Iranian General

The holidays are over and the search for the Godot Top continues. The bulls keep running higher slapping the bears around like a kitten playing with a ball of yarn. The SPX, which is the S&P 500, and the index that is considered to be the US stock market, prints a new all-time high at 3250.04. Of course it does. The PBOC (China's central bank) cuts the triple R's overnight. The communists are goosing the markets with easy money right out of the gate this year.

Recapping the recent price action, the Federal Reserve was concerned about a credit event occurring at the end of the year so they provided QE to guarantee liquidity in markets. Things worked out, especially for the wealthy that own large stock portfolios, since the stock market catapulted higher during Q4 on the central banker largess. The central bankers are the market and this is proven again overnight with the PBOC pump that gooses global indexes.

The Shanghai (SSEC), France (CAC) and Germany (DAX) are all up over +1% on the communist pump and US markets are in party-mode to begin the new year. The PBOC pump is $115 billion of liquidity for the global financial system. Investors dance with glee feeling that central banker heroin course through their veins; traders joyously buy stocks while already looking for the next central banker fix.

The CPC and CPCE put/call ratios continue calling out uber complacency for the last six weeks. The market euphoria and the negative divergence on the SPX hourly and daily charts in mid to late November identified topping behavior, and it occurs, but stocks do not retreat far before the US-China trade deal hype and the ongoing easy money Fed pump saves the day. Thus, the price action above 3080 may be all-out fantasyland. Interestingly, lots of analysts are now opining about a pullback to begin the year.

Comically, the markets are mass confusion and chaos. The stock market rallying non-stop against the uber complacency is a rare occurrence. You would expect stocks to pull back more substantively by now considering the ongoing complete lack of fear or worry that is rampant in the markets. Even if stocks sell off, dip-buyers will jump in since they know the Fed will always be there to save the day. Moral Hazard is our mantra.

In mid-December, the bulls goosed utilities and jammed volatility lower so the fix was in. With the low volume holiday trading and good-will joy of the season, stocks float higher. Traders are beginning to return to trading floors although not everyone will be back at work until Monday and Tuesday. So that brings us up to the present day. Sentiment, the charts and technicals say down but King Donny's trade deal hype and the Fed's intervention, now handing it off to the PBOC's intervention, say up.

The new all-time historic price high above 3250 comes with universal neggie d across all indicators (red lines) so the top is in. In addition, the RSI and stochasitcs are overbot or coming off overbot agreeable to a pullback. Price tagged the upper standard deviation line at 3251 now, so the middle band at 3233 is in play as well as the lower band at 3215. Price is extended above its moving averages needing a mean reversion lower.

The chart says down in this 2-hour time frame. Right now, President Trump is on the phone with Chairman Powell telling him to start cutting rates or at least have an announcement ready in the morning that can stop the technicals from playing out again. After that call, Donny talks to dictator Xi asking him to bless the trade deal so the 1/15/20 planned signing date can occur. Donny is hoping he can announce something minutes before the stock market opens tomorrow so that can counteract the chart negativity above. 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 3:18 PM EST: The SPX is up 18 points, +0.6%, to 3249 a hair from the all-time high at 3250.04 and a new all-time closing high may be on tap as well. The neggie d spankdown should be on tap unless King Donny or the Fed, PBOC, ECB or BOJ (the four central banker horseman of the Apocalypse) plan otherwise.

Note Added 3:33 PM EST: The SPX is up 19 points, +0.6%, printing a new all-time record high at 3250.34. The hits keep coming as Casey Kasem would say. The neggie d remains with the new price high so if you thought of selling long position/s, or shorting, you have 27 minutes. If not, you will likely regret it in the morning.

Note Added 3:42 PM EST: The SPX prints a new all-time record high at 3250.48. VIX 12.64. VIX LOD is 12.57. Volatility should be below VIX 12.57 since stocks keep printing new record highs.

Note Added 3:46 PM EST: Wheeee! Whoopie! The SPX spurts to 3251.13 a new all-time record high. The wealthy elite class in America are dancing on top of conference tables in boardrooms everywhere. Crony capitalism, the rigged game, is fantastic, well, if you have a lot of money that is, not so much if you are one of the huddled masses that do not own a single share of stock.

Note Added 3:49 PM EST: Woohoo. The SPX is catapulting higher in the final minutes another new all-time record high at 3252.60. VIX 12.57.

Note Added 3:51 PM EST: The SPX prints a new record high at 3253.38 and the VIX is at a new LOD at 12.54.

Note Added 3:54 PM EST: The bulls are unstoppable. The SPX goes parabolic in the final minutes printing 3255.53. The S&P 500 is popping one point every minute. VIX drops to a new LOD at 12.46. The price action is wild and erratic the SPX tags 3256.54.

Note Added 4:00 PM EST: The S&P 500 pops 10 handles in the last 10 minutes. The SPX gains 27 points, +0.8%, to 3257.85 a new all-time closing high and 3258.14 a new all-time high. No one wants to fight the Fed or PBOC.

Note Added Friday Morning, 1:30 AM EST: The United States assassinates Iran's top commander General Qassim Soleimani in a drone strike in Baghdad. A Whitehouse and Pentagon statement says the general was involved in terrorist deeds against the US and its interests. The world will want to see these documents. The killing of the general drastically escalates Middle East conflict. King Donny crosses the Rubicon. Every American in the Middle East now has a bulls-eye on their backs. If the US is assassinating nation leaders now, then other countries will retaliate by killing Americans. Trump's legacy may be starting World War III in the Middle East. The S&P futures tank -28 points wiping out the Thursday rally. Dow -215. Nasdaq -80. Oil is up +3% and initially popped +4%. Gold is at a 4-month high at 1542. Silver is up. Copper drops -1%.  Treasury yields fall as investors seek perceived safety. Treasury yields are; 2-year 1.57%, 5-year 1.666%, 10-year 1.88%, 30-year 2.33%. The 2-10 spread is at 31 bips. Euro 1.11666. Dollar/yen 108.12. The yen is at a 2-month high (dollar/yen pair moves lower). Pound 1.3112.