SPX S&P 500 Daily Chart; SPX Prints All-Time High at 3337.77; Overbot; Rising Wedge; Negative Divergence; Upper Band Violation; Price Extended

The S&P 500 print a new all-time record high at 3337.77 on Wedensday, 1/20/20. The four central banker horsemen of the Apocolypse, the Fed, BOJ, ECB and PBOC, ride across the sky dropping money from the clouds. The world is awash in liquidity. The central bankers are the market.

Stocks receive the neggie d spankdown described in the previous SPX 2-hour chart. If you bring up the 2-hour, you clearly see price printing the highest number in history at 3338 at 10:45 AM EST, and at the same time, all the chart indicators are negatively diverging, so you knew price was out of gas, and stocks begin to retreat receiving the neggie d spankdown.

The SPX daily chart above is set up negatively like the 2-hour with overbot conditions agreeable to a selloff ahead, the rising wedge pattern, the neggie d (more on the MACD in a second), price violating the upper standard deviation band and the SPX extended above its moving averages requiring a mean reversion. All this mumbo-jumbo is bearish. The middle band, also the 20-day MA, at 3265 is on the table as well as the lower band at 3195 down where the 50-day MA at 3187 is playing around.

You can bring up a short-duration daily chart to check out the MACD line. If you squint real hard, and hold one hand over the left eye, and blink a few times, you can see that the MACD line is the tiniest hair higher as compared to the days prior. This hints that price may want to try and hang on for another day or two, at these elevated levels, and then roll over and die (as opposed to already being dead right now; stock should continue lower from here).

So Keystone extended the chart one-year so the MACD line could be investigated further. Over that longer period, the MACD line is negatively diverged so the chart is cooked with neggie d just like the 2-hour chart. Sure, the MACD may try to poke out some upside tomorrow but stick a fork in this market, its cooked.

The only thing that can save the day is happy talk either on trade, or dovish Fed speak. Do not be surprised if King Trump forces Kudlow to run out onto the Whitehouse lawn tomorrow morning and start pimpin' those middle-class tax-cuts. Donny will tell Larry not to laugh out loud while you do it, tell the stupid little huddled masses anything, they'll believe it.

The ECB is on tap so they will probably flap dovish wings. Madame Lagarde is in charge of the European Central Bank now and she has announced a phase of gathering data and assessing the situation so she is off the hook as far as expecting a major policy announcement. President Trump is flying back from Davos. It is comical to see his trouble in dealing with women play out again.

King Donny met with EU Commission head Ursula von der Leyen, a couple times the first couple days of the Davos conference. Donny was charming, all smiles, it seemed like the future trade talks between the US and Europe would start down a more positive non-confrontational path. He smiles and nods at what von der Leyen says. Today is a different story. Soybean Donny is threatening tariffs on French ag products and German cars. He had all the time in the world to discuss this stuff with von der Leyen but he never mentioned word one. Soybean Donny always does things behind people's backs. That's how he fires everyone; via tweet or he has one of his henchmen do the dirty work. Donny avoids that type of confrontation despite his daily machismo proclamations.

The democrats should know that their only hope at defeating President Trump is with a female candidate at the top of the ticket. Trump will annihilate any of the men that want the job; none of them have a chance. It is difficult, however, for Trump to deal with powerful women. Democrat candidate Kamala Harris flamed out since she was too whiny with a negative vibe.

The other two female democrat candidates for president are Elizabeth Warren and Amy Klobuchar. Warren is a ball of fire and will be hit hard on her socialist ideas, like Bernie Sanders. Liz may be better suited for a school marm position rather than president although if the economy and markets tank, you will see her star rise quickly. So that leaves Klobuchar and she is palatable to the independents in the middle that will decide who wins. Amy may be the great white hope for the democrats; if she does not show well in the first few contests, she will be gone, and the democrats will likely have no chance to win in November unless Donny is not on the ticket due to scandal, health or other reasons.

The impeachment trial continues with the two corrupt political parties pointing a finger at each other with three fingers pointing back at themselves. The videotape the democrats are using showing witnesses provide damaging testimony against the president are effective.

So stocks are cooked in the hourly and daily time frames and should retreat for several days. The new moon peaks on Friday and stocks are typically weak through the new moon so there may be sogginess and sad news through the weekend. Covert raids will be carried out under the pitch-black darkness of the new moon perhaps in Iraq; the US has the superior night vision technology. Quake and volcano activity may pick up on the weekend since the Earth and Moon are at an inflection point.

The SPX weekly chart is in neggie d except for the MACD line, thus, stocks will likely retreat for several days, say a week or so, but then recover again due to the long and strong MACD on the weekly chart, coming back up to the record highs again, say, as February begins, and that should turn the MACD over so the stock market would be topping out on a multi-week basis starting early February.

The Keybot the Quant algorithm remains long and is tracking copper with interest. Bears need CPER to drop below 17.36 which is about a -0.2% drop in copper futures so watch that overnight. As copper goes, so goes the stock market. Keybot is also tracking VIX 13.58 as a key bull-bear line in the sand. Stock market trouble starts if the VIX moves above 13.58. Bulls are okay if the VIX stays below 13.58. The VIX begins trading at 3 AM EST. The bulls are living a Wild Wild Life.

The stage is set. It feels like Gettysburg before the big battle. If you listen real close you can hear a sad harmonica song in the distance. The bulls and bears know that history will likely be written in the stock market tomorrow, the coming days and the month or so ahead. The sad notes of the harp echo through the deserted and darkened streets of Wall and Broad. 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.