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

The SPX recovers from another downdraft after Emperor Jensen proclaims that AI is the best thing since sliced bread. The last candlestick shows the all-time high at 6978 and the all-time closing high at 6966. Price did not have to come up for another higher high. The SPX was already neggie d in the 2-hour timeframe. Huh? What is this language he speaks?

The maroon lines show the top on Wednesday receiving the neggie d spankdown but as mentioned, the AI hype talk stick-saves stocks. Once the technical breakdown occurs, the index or ticker is toast but if news hits the tape, that must be priced-in to the chart. Charts only price-in everything known about a stock, including all the trading by insiders, up to the minute. When news hits the wires, that is something new that the chart must handle and digest.

The 2-hour handled the happy talk on Friday and the last candlestick was already becoming soggy. The red lines show price making the higher highs, so the chart indicators can be reviewed to see if negative divergence exists so you can call the top. It is. Just like Wednesday so the expectation is for stocks to move lower out of the gate tomorrow and in the week ahead but, as mentioned, if happy news hits the tape, that may extend the joy another couple days. Conversely, if negative news hits the tape, the stock market turd will be immediately flushed.

King Donnie will probably stand in front of the cameras between 3 PM EST and 6 PM EST today before the S&P futures begin trading to try and grease the skids for the bulls in the week ahead.

Everyone is bullish on stocks. The rampant complacency is proven by the low put/calls. The 2-hour is topped-out. Let the festivities begin. Bob Weir kicked the bucket. LSD sales will never be the same. He wrote some great songs; an excellent musician, guitarist, singer, and songwriter. Let's have some Sugar Magnolia on a Sunday morning. Come on gang, jump in the van, let's head down to the concert and jam all day. Pass the bowl; gimme a light. Tie-dye tee shirt sales will never be the same. 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.