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

Did you watch the SPX 2-hour chart to see when it sets up with neggie d so you can call the top? You didn't? Instead you had your fat head buried in your smartphone watching stupid videos or sending meaningless messages to another idiot?

The SPX 2-hour chart topped-out late Friday on the last candlestick. As price prints the matching high, note that the MACD ticks slightly lower over the last 4 hours. Price is out of gas. The chart indicators are negatively diverged for the last 3 weeks and now over the last few hours. She's toast.

The only thing that can save the day would be more AI hype from the WWDC and other events this week, or happy inflation data, or happy talk from the Fed. No doubt the Fed has chart technicians chained to their desks in the basement of the Eccles Building so they know what is on tap.

Interestingly, the SPX 2-hour, daily, weekly and monthly charts are all negatively diverged across all chart indicators. The minimum expectation is for stocks to top out now and begin a multi-week slide lower. The charts will then indicate if the long-term top is in that would create a pall on the US stock market for many months even a couple years. Did you put on shorts during the last candlestick when you clearly saw the 2-hour chart go fully neggie d?

This week we see what the Fed has up its sleeve. All the Federales' say, they can manipulate the market any way. Pancho and Lefty. 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 Thursday, 6/13/24, at 5:50 PM EST: So the circus had to play out this week with Apple WWDC, more AI hype, the inflation data and Fed song and dance, and all hit home runs so the upside orgy was in full swing. The charts need to adjust for a day or few to absorb the stick-save news (charts showed that the SPX was ready to drop in the short-term time frames before the stick-save happy talk occurred). Let's take a look. On the SPX 2-hour chart, price came back up for a matching high and the chart indicators remain meggie d. A candlestick or two may show further buoyancy in price but that likely comes with continued universal negative divergence. The 2-hour is like it was on Friday, calling a VST top in stocks. There may be news overnight that gooses stocks again so watch for that, if not, the SPX will want to move lower in the 2-hour time frame, from here or a bit higher topping out during the first hour or two of trading tomorrow. On the SPX daily chart, that gap up hump day creates an island for price so an island reversal pattern is possible where price would drop to 5400 and then immediately fall back through the gap to 5360, or, alternately, price may drift lower to fill the gap for a simple gap-fill. The chart indicators receive some additional fuel on the happy talk news this week but the RSI that is overbot may already be flattening and turning down into neggie d again. The MACD remains neggie d although it may sneak out higher for a couple days. The histo and stochastics remain cooked. The money flow receives a boost so this and the RSI are long and strong. The daily chart may need 2 to 4 days to jog down-up-down-up and top out again pricing in the news nonsense. Nothing has changed much despite the cheerleading by the pump and dumpers. The daily chart should set up negatively with a top in the days ahead; simply watch for all the indicators to go neggie d. On the weekly chart, it remains cooked with neggie d. The RSI, MACD are slightly higher wanting to squeeze out a week or two more of price staying at these elevated levels, but it is hard to imagine that the indicators will overtake the highs from 2 to 5 months ago. Thus, the multi-week downturn for stocks should begin anytime. Looking at the monthly chart, it remains universally neggie d like the weekly chart, ugly stuff, although the MACD is trying to rally the troops to try and remain elevated another month or two. The weekly chart wants stocks to begin a multi-week slide now so the daily chart will tell you the top. Mixing it all together, since trading is like playing multi-dimensional chess only you are using time frames instead of physical levels, stocks should roll over in the 2-hour time frame starting tomorrow and sell off early next week but the daily chart may need one or two jogs so price will likely come back up in the daily time frame the end of next week and top out, or the following week. Thus, a significant stock market top is in the offing in the days ahead probably between 6/20/24 and 6/28/24 (watch the daily chart). Thus, think about your long positions and if you want to hold them for many weeks forward as they slide lower. The charts will tell you the timing; it's all in the neggie d. Pressure gonna drop on you. Hey, Pressure Drop. Hit it Toots. Fantastico. Hand me that Rastafarian hat, Sonny.