SPX S&P 500 Daily Chart; Overbot; Rising Wedge; Negative Divergence; Upper Band Violation; Price Extended; SPX Prints All-Time Record High at 3329.88 and All-Time Closing High at 3329.62

The stock market rocket ship hits the afterburners and launches into the stratosphere. The SPX prints a new all-time record high at 3329.88, the eighth consecutive intraday all-time record high, and new all-time closing high at 3329.62. Equities are usually buoyant the two days in front of a three-day holiday weekend and the chart clearly shows this was the case. US Markets are closed Monday for Dr Martin Luther King Day. The stock market bulls have the wind at their backs receiving many bits of joyous news to create the highest number ever recorded in stock market history.

First, the Fed put remains under the market and the obscene QE money-printing for the last four months creates the record stock prices along with moral hazard. After 11 years of global central banker collusion and money-printing, even detractors of the central banks throw in the towel and agree that the Fed, BOJ, ECB, PBOC and others can print money forever and keep the stock market moving higher perpetually. The PBOC started pumping markets out of the gate this year with triple R cuts. The BOJ will likely tout more dovishness in the week ahead. These folks are sick. The central bankers are modern-day financial alchemists; they turn fiat money-printing into golden profits. One of the reasons gold remains well bid is the wealthy cashing-out after 11 years of easy stock market gains and buying hard physical assets; these folks know how to rape the country for every penny its worth.

Second, the US-China trade deal is signed on Wednesday, 1/15/20, with an embarrassingly-long dog and pony show where King Trump, the politicians and corporate executives took turns strutting around the room like peacocks; this is how the elite class plays. The trade deal, which does not appear worth the three-year wait, is met with great fanfare and rising stock prices. Third, the Kudlow Rally.

After the stock market started to stutter after the US-China trade deal hype was known, Treasury Secretary Kudlow said a middle class tax cut is on the table this year. This creates lots of stock market joy and another 20 to 30 handles of SPX fun. Kudlow walked back the statement but then once the Whitehouse saw that it pumped the stock market, they were okay with the rumor circulating into this weekend.

Fourth, the utilities are goosed higher. UTIL was on the verge of falling into a weekly downtrend which would have sunk the stock market going forward and into and through the intermediate term. Utes went parabolic last week and the all-clear from this sector created more upside buying. In addition to all of the above joy, the Housing Starts are a blow-out number so everyone high-five's each other believing that the recovery is in great shape going forward ignoring the drop in Permits.

The current price action in the stock market is reminiscent of January 2018. That was a wall-to-wall melt-up day after day just like now. Even though many folks thought a top was near, they kept buying stocks anyway, like now. Back then, hedge fund manager Ray Dalio, at Davos, Switzerland, where the billionaires gather to impress the millionaires, lamented that anyone not in the stock market is an idiot. Dalio top-ticked the stock market because it was the next day that it all fell apart and stocks crashed going forward. Davos is next week so history keeps rhyming. Who is this year's Dalio?

We have three candidates. David Tepper made bullish comments on the stock market which also helped create the bullish Friday. Tepper correctly called the never-ending stock market gains over the years due to the Fed's constant money-printing. The central banks remain accomodative so Tepper likes the market long. Traders buy stocks on Tepper's words. Tepper proclaims, "Keep riding the market horse (long)."

Wharton professor Jeremy Siegel, another long-time bull, proclaims that Dow 30K can happen anytime forward. Siegel steps on to a soapbox, wets his index finger pointing it skyward, and decrees, "Stocks are the place to be." Stan Druckenmiller, another much-followed Wall Street guru, is also "riding" the stock market long. Perhaps these three are top-ticking the market this time around.

Keystone has highlighted the low put/calls, low VIX, elevated SPXA150R and SPXA200R and other parameters that are signaling a significant stock market top right now, however, the positive news bites continue to keep stocks elevated despite the technicals desperately wanting to see a pull back. The behavior in the three top analysts above is exactly what you would expect at a significant market top. Everyone is bullish. Even if someone opines about a pullback, they quickly say it will be a buying opportunity and markets will continue higher in the long run. The old joke on Wall Street is that in the long run, we are all dead (you may wait around forever for a stock to recover after a drubbing and end up dying before it ever does). The Keybot the Quant algorithm has been long for almost 7 weeks. 

Keystone's 80/20 rule, where 8's lead to 2's on the way up, says the 3280 may lead to 3320, which it does. The 3328 should lead to 3332 which would be another record high. The bears will have to halt price here at 3332 or lower because if it ventures higher, the S&P 500 may want to seek 3380.

The daily chart remains in neggie d wanting to see a pullback. Price is now stabbing up through the top standard deviation band verifying the uber bullishness. Traders are buying at any price convinced that they are missing the train leaving the station. The middle band and 20-day MA at 3254, and rising, and lower band at 3188, are on the table. The new news such as the Kudlow proposed middle class tax cuts, is being priced-into the chart. The MACD pops higher although it remains neggie d long term. The MACD and RSI have some momentum so it may take a day or three of sideways jogs to display neggie d on the MACD and create a top again. Since the MACD is negatively diverged over the longer-term, the market can simply roll over and die at anytime; it certainly is long overdue.

The ADX has now moved to 39 so the uptrend is now considered a strong trend; the best the Fed money-printing can buy. A strong trend tends to continue. The Aroon, however, is pegged at the one hundo and zero levels both indicating that they have nowhere to go except in a bearish direction.

Market participants continue waiting for the Godot Top. Take the money in your long positions and make a run for it while the path to the door is not that busy. In the days ahead, everyone may be trying to squeeze through that exit door.

Considering the epic price action ongoing in markets, the Fed intervention and other shenanigans, a Black Tuesday (markets are closed on Monday), or black anyday, or flash crash, event is on the table. There may be some exciting days ahead. It will be fun. The stock market right now is like Jimmy Stewart and his honey, Donna Reed, dancing by the pool in It's a Wonderful Life. The dance floor opens up to a swimming pool below. The dancers are having a great time partying like its the Roaring 20's, now the stock market parties in the 2020's. They do not realize the floor has opened up so when the crowd becomes more noisy, they think the applause is for them.

The stock market is all proud of itself, dancing along the rim of the volcano, chest puffed out, looking up at the sky, oblivious to where its feet are at. The feeling of euphoria is off the charts. Nothing can go wrong. The stock market dances and dances perilously close to the edge of disaster but is always saved by the Fed until one day the joy and ecstasy at the market top gives way to a falling sensation and sudden drop at the end. 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.