Monday, February 10, 2020
SPX S&P 500 2-Hour Chart; S&P 500 Prints All-Time High at 3352; Overbot; Rising Wedge; Negative Divergence; Price Extended
The SPX prints a new all-time high at 3352.26 and new all-time closing high at 3352.09 on Monday, 2/10/20. Sound the Seven Trumpets! The SPX 2-hour chart had a bit more upside energy due to the long and strong MACD line described on Friday. You can see now that with the higher high in price, the MACD is now neggie d. The indicators are in universal negative divergence so the top is in. However, the bulls created momentum in the last hour of trading so tomorrow morning will tell if they can squeeze out a few more hours of elevated stocks before the SPX receives the spankdown.
The expectation is for the stock market to begin selling off now. You will have to watch to see if the bulls can squeeze out a higher high with the RSI, or money flow, but even if they do, that would only extend the top by a few hours. If there is negative news overnight or some type of negative catalyst, stocks and futures will likely be flushed down the toilet quickly since it would kick the neggie d into high gear.
The president and the Fed are no doubt up all night trying to come up with a happy news story for tomorrow morning that can keep stocks buoyant. Do you want to bet that Larry Kudlow shows up on the Whitehouse lawn tomorrow morning touting a tax cut plan for the middle class? Barring any happy talk, stocks are set to start tumbling lower. 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.