SPX S&P 500 2-Hour Chart; Overbot; Rising Wedge

Here is another SPX 2-hour chart since that has been of interest over the last day. The MACD needs to go neggie d to identify the near-term top. On the pop today, due to more joy around potential fiscal stimulus, the RSI goes from flat to sloping higher receiving more upside juice that it can give to price. However, the two candlesticks that print today so far, with matching highs, show the RSI back in neggie d again along with the other indicators, sans the MACD.

So its back to square one still waiting on the MACD to roll over. Price should come up during the next candlestick which is from noon to 2 PM EST (currently in the 10 AM to noon candlestick) and that should occur with the MACD finally going neggie d. If so, the top is in. Let the chart develop. A candlestick or two for the MACD to top-out is 2 to 4 hours so that is between now and 2:30 PM or 3 PM. The red rising wedge is a bearish pattern. Stoch's are overbot agreeable to a pullback. The bulls want to keep stocks elevated into the weekend because that allows time for Congress to make a last ditch effort for a stimulus bill deal and announcement before trading begins next week.

Democrats are feeling confident with Biden rising in the polls while President Trump flip-flops on stimulus so the liberals do not want to hand republican Donnie a gift before the election, hence, the American people suffer. Same-o on the republican side. They can easily bump up the dollar amount and a stimulus deal can be announced right away but they do not want to be viewed as big spenders before the election which will hurt them in the election. Besides, all the rich folks are already in good shape after the covid economic collapse; their greedy hands shoved government money into their corrupt pockets while poor individuals still have money coming to them and they do not know it or how to get it. America says, "Let them eat cake."

Democrat House Speaker Pelosi probably told Trump that you can either have the supreme court pick or the stimulus bill but not both before the election. Trump wants to push the court pick through since if he loses the election, he can glob on to the future conservative court system in America as his noble legacy; and it would be a good legacy for a conservative. That is why the republicans supported Donnie; they stacked the courts with the republican judges with Trump's help. Now that Trump picks three new supreme court justices and stacks the courts with hundreds of conservative judges, his worth may now be limited to the republocrat and demopublican deep state. 

All that palace intrigue aside, watch the 2-hour. The top is in when the MACD goes neggie d. The SPX daily chart had some additional upside juice so marry those two charts together when assessing the path over the coming days. Probably down now into early next week, then a bump back up to current prices then roll over mid or late next week. The charts will lead the way. Remember the uber low put/calls and elevated NYHL that tell you a top is so close you can smell it. 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 11:01 AM EST: Republican Senate Leader McConnell says a stimulus deal is unlikely before the election but all these jokers are posturing; a bunch of poser's. SPX is up 20 points at 3466.60. VIX is at 25.22.

Note Added 11:17 AM EST: The VIX drops to 25.17 teasing the late August prices all morning long. Volatility will have to bounce or die from this critical support area. SPX 3467. Check the MACD on the chart as the noon candlestick begins then again at 2 PM.

Note Added 11:29 AM EST: Speaker Pelosi says she still wants a stimulus deal. Everybody, come on now, up on stage, don't be shy, we're all having fun, form a circle, Pelosi, Mnuchin, Donnie and McConnell, it's time for the Hokey Pokey. Wheee! Whooopie!. VIX slips to 25.04. SPX pops to 3469.

Note Added Saturday, 10/10/20: The stimulus pump continues on Friday sending stocks higher. Thursday and Friday are both gap-up days due to the fiscal stimulus deal hype. However, the stimulus talks seem to be about where they were. Trump bumps up the offer to $1.8 trillion which is in the middle of the original offers where the republicans offered the small $500 billion and democrats wanted $3.2 trillion. The democrats, led by Pelosi, have reduced their deal amount to $2.2 trillion but that remains $400 billion away from the latest offer from the republicans. The SPX ends the day up 30 points, +0.9%, to 3477. HOD 3482. VIX ends at 25.00 with a LOD at 24.03. On the SPX 2-hour chart, it is same-o, same-o. The chart indicators are all neggie d sans the MACD. The MACD line moves higher by a hair so the door has to be left open for price to print another matching or higher high at 3480-ish (not hard to do). The bears would be well-off if the SPX did print the higher high in price on Monday morning first thing because if the MACD goes neggie d from the start, the top is in. The charts have to price in the stimulus happy talk and they are already absorbing the news. Price has momentum higher although it is driven by stimulus news (hence, the stock market can reverse hard if the stimulus news turns bad). Markets want to hear a deal announced before futures begin trading Sunday at 6 PM EST. The 2-hour chart should head lower at any time but the daily chart still has upside juice for a couple days or so. If the stimulus deal falls through, the negativity may kick in right away. It is a news-driven market. Stay nimble.