SPX S&P 500 2-Hour Chart; Overbot; Negative Divergence

Stocks jump wildly higher on news that former Federal Reserve Chair Yellen, Queen of the Doves, will takeover as Treasury Secretary (Mnuchin's job); she will sign the US money. The Dow tags 30K. Indexes keep printing or teasing new record highs.

Left to right, those four blue squares are the PFE vaccine rally, then the MRNA vaccine rally, then the AZN vaccine rally, and lastly, the Yellen Rally. Some of today's joyous 58 point pop is attributed to the start of the transition of the presidency but the Yellen appointment is far more important. She will do everything in her power to try to push fiscal stimulus through while cheerleading Fed Chairman Powell to print money endlessly (monetary stimulus).

The red lines show the last three highs all spanked down by negative divergence, er, right now is the third high, the top is in. Price is printing successive matching or higher highs but the chart indicators are sloping downward, negatively diverging away from the rising price, thus, a neggie d smackdown is needed to put price back in its place. There was no reason for the SPX to come back up after the prior two highs; it was not due to technicals but instead due to vaccine and stimulus hype and perhaps an end to the King Donnie baby saga at the Whitehouse. 

Barring anymore happy talk, the 2-hour chart has reset and is ready to receive a spankdown in this 2-hour time frame. We shall see what the bears got. It is odd timing however, with the holiday. Typically, stocks are bullish into a holiday but the stock market is overdue to crack and the low put/calls and elevated NYHL want to see a major selloff. The month is up and when that happens the last few days typically finish down. Do not be surprised if the stock market retraces today's huge up move with a reverse move just as large or larger tomorrow. 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.