SPX S&P 500 2-Hour Chart; Overbot; Rising Wedge; Negative Divergence; Upper Band Violation; Price Extended

Whheeee! Whooopie! Take another swig of Fed wine. Mainline some ECB heroin. Here's some BOJ crack that will really make you fly. Whoopie! Traders become whacked out on central banker easy money booze and drugs and buy any stock with a heatbeat. The SPX prints a new all-time high at 3426.00, on the dot, today, Monday, 8/24/20.

Here is a look at the SPX 2-hour chart a new candlestick has just started at 10 AM EST. The next ones will begin at noon, then 2 PM. Despite the euphoric pop this morning, the 2-hour is not impressed. The RSI and stochastics are overbot. The red rising wedge pattern is bearish. The red lines show universal negative divergence despite the new all-time record high minutes ago. There is a tiny bit of juice with the MACD line but clearly the chart is cooked.

Price has popped above the upper band, a moon shot, so a return to the middle band at 3390 and lower band at 3366 is on the table. The rampant stock market complacency continues for the last month and a half. It is epic stock market price action. The SPX is a drunkard dancing along the side of the cliff. He laughs and jokes as small rocks fall out from below his feet and fall 600 feet (200 m) below. The stock market says it can do no wrong; it is invincible. The S&P 500 says even if I jump off this cliff the Fed will save me. Moral hazard has arrived. The SPX dances with glee and asks for another swig of PBOC rice wine and another ECB funny cigarette but as he does he loses his balance.....aahhhhh...whoa......aahh.....

The SPX is ready to drop. It is long overdue considering the rampant complacency and euphoric bullishness. Stocks should top out anytime over the coming hours, the MACD line may help equities hold on to these current elevated levels, say, into munch time. 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 10:20 AM EST: Woo-hoo!. The SPX prints a new all-time record high at 3426.99 now exactly topping at the 99-cent print. VIX 22.56. The VIX is up marginally but nonetheless both stocks and volatility are higher so one of them is wrong.

Note Added 7:38 PM EST: Whoopie! Wheeee! Woo-hoo. Fed Chair Powell jumps on top of the stock market pumping his way to glory. Yee-haw! Powell plans to lay out plans Thursday to pump inflation higher which means perpetual easy money. Stocks jump higher. The SPX prints a new all-time high at 3432.09 and new all-time closing high at 3431.28. Financials explode higher. XLF +2.4%. The VIX ends down at 22.37 (so volatility was wrong today and the stock market was correct) but this is well above the lows over the last dozen days. In other words, the stock market is making new highs day after day after day into and through today but the VIX is no longer making lower lows. That divergence should be respected and monitored. The euphoric bull party continues long into the evening. The Fed is spiking the punchbowl again. Hourly and daily charts remain in neggie d; bulls are trying to keep it all afloat into the Jackson Hole meeting and Powell's comments on Thursday. The complacency is out of control signaling a significant top in the stock market. A Black Tuesday, Wednesday or any day is on the table as well as an intraday flash crash; everyone's playing at the deep end of the pool right now. Are you going to sink or swim? There is going to be some crazy chit going down beginning at anytime. Now through September may be historic and talked about for decades. Don't be surprised if the stock market reverses tomorrow and gives back today's gain plus some. Watch the US dollar. Dixie is heading higher holding above 93 and the daily chart is agreeable to a bit more up. If the massive dollar shorts begin panicking, March redux occurs, the dollar would skyrocket higher, stocks collapse, gold and silver collapse. The dollar is key. Keystone is the only bear remaining on Wall Street (individual positions; the Keybot the Quant robot remains long). As a trader, sometimes it's good to be Alone.