SPX S&P 500 Weekly Chart; SPX Prints All-Time Record High at 3827 on 1/8/21; Overbot; Rising Wedge; Negative Divergence Developing; Upper Band Violation; Price Extended

Woo-hoo! Wheee! Whoopie! Stocks are pumped higher on promises that fiscal and monetary stimulus will continue forever. The SPX prints an all-time record high at 3826.69 and new all-time closing high at 3824.68 both on 1/8/21.

Traders yawn at the negative jobs report, pandemic raging out of control and Capitol Hill Riot since the four central banker horseman of the financial apocalypse, the Fed, BOJ, ECB and PBOC, will always ride-in to save the day. The Federal Reserve is printing money like mad protecting America's wealthy class. It is the crony capitalism system. We are approaching the end times when the Fed, the world's lender of last resort, makes a final appearance, riding-in on the pale green horse, the final harbinger of market doom, the snorting stallion kneels, the sky darkens.

For the SPX weekly chart, the stochastics are overbot agreeable to a pullback. The RSI is just coming into overbot territory. The rising wedge pattern is ominous since the failures can be quite spectacular. The red lines show all the indicators in negative divergence except for the MACD (pronounced mack-dee) line that remains long and strong. This is 'deja vu all over again', as Yogi would comically quip. Keystone commented on this a week or two ago with the chart set-up. It is like a bad Twilight Zone episode that keeps coming back. Stocks would have already topped-out but the never-ending diatribe of more fiscal stimulus, then more monetary stimulus, then happy vaccine talk, then back to more fiscal stimulus, and round and round she goes, where it stops nobody knows, sends equities higher. Step right up, Sonny and Girly, put your money down. Sucka's.

The MACD is long and strong (sloping higher) so typically you would expect a jog move to top things out. The neggie d with the other indicators will create a spankdown now, but after a week or so, stocks should come back up for another matching or higher high, and at that time, the MACD would go neggie d and the top would be in; this scenario says the important top is about a week away. However, as was mentioned in that prior Twilight Zone episode, the MACD is in the stratosphere at 149 so considering this nosebleed atmospheric height, price can begin dropping and the MACD could drop coincidentally (at the same time). This baby is topped-out but that short-term momentum may try to keep things elevated for a few more days. The expectation is for stocks to begin dropping and a multi-week down turn to begin at anytime.

The SPX violated the upper band so the middle band, the 20-week MA, at 3529, is on the table and the lower band at 3229. That 3229 number is something that you can see quickly and easily when the rising wedge decides to give the stock market its nasty smackdown. Price is extended above the moving averages so a mean reversion lower is on the table. The Aroon is at maximum bullishness. Traders and investors cannot get anymore bullish. And this is on a weekly basis! Everybody and his brother are all-in on the stock market long side using the 5X quintuple QQQQQ tech ETF and on 10 to 1 leverage. It's comical. This stuff ends in tears.

So marrying the SPX weekly with the SPX daily and 2-hour charts previously posted, we have tick-tac-toe. The expectation is for a multi-week pullback to occur beginning anytime. The drop would be from 200 to 1,000 SPX points say into the end of this month and early February.

Remain extremely alert. Something very special will begin at anytime in the coming days. Even Paradise comes to an 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.

Note Added Monday Morning, 1/11/21, at 9:25 AM EST: In a CNBC interview, permabull Ed Yardeni expects more stimulus spending and a happy outcome to the vaccine situation. Yardeni calls for SPX 4,300 this year. GS analyst Kostin ups his earnings estimates for this year. The Wall Street analysts and television pundits remain uber bullish. Even if a pullback occurs they say 'buy the dip'. Everything is bullish happy talk. The week begins on a down beat, however, with S&P futures down -31 points. The US dollar is catching a bid up to 90.62. Will the dollar shorts panic a la March redux?

Note Added Monday Morning, 1/11/21, at 9:38 AM EST: Stocks sink at the opening bell. The S&P 500 slips 32 points, -0.9%, to 3792. The US stock market remains at nosebleed levels.

Note Added Monday Morning, 1/11/21, at 9:49 AM EST: The VIX is at 24.29. Keybot the Quant algorithm remains long but it is tracking VIX 25.21 as the key bull/bear line in the sand. If VIX moves above 25.21, the stock market will be in big trouble. If the VIX remains below 25.21, bulls are fine.

Note Added Monday Morning, 1/11/21, at 11:32 AM EST: The VIX is at 23.45. VIX HOD is 24.56 so watch this number closely, then the 25.21. For now, the bulls are yawning asking the bears if that's all they got. SPX 3811.