SPX S&P 500 Daily and Weekly Charts

The SPX (S&P 500; the US stock market) monthly chart remains in neggie d forecasting bad things ahead on the long-term multi-month, and perhaps a few years, basis. The CPC and CPCE put/call ratios are at multi-year lows verifying the rampant complacency, fearlessness and euphoric bullish optimism at play in markets and forecasting a major top at hand. Idiots are placing large sums of their savings into the stock market expecting +10% to +20% returns per year forever. They are going to lose their shirts and only serve as bag holders.

The put/calls indicate that a significant stock market top is at hand. The SPX just rallied over +13% in 14 trading days, call it a +1% per day ridiculous rate, to a new all-time record high at 7148. Since the boat is fully loaded on the bull side and the ship is starting to list to that side, the hourly, daily and weekly charts can be used to pinpoint the top. The weekly chart will begin printing a new candlestick tomorrow morning and that will provide insight into the weekly time frame.

The SPX 2-hour chart above is cooked. The negative divergence (red lines) sticks out like Buddy Holly showing up at the Apollo Theater. Music is the only universal worldwide language. Price moves higher but ALL the chart indicators are sloping down, sloping negatively, negatively diverging down away from price that is still floating higher. That is a neggie d top.

You can see the positive divergence (green lines) bottom at the end of March as Keystone previously discussed. Note that the MACD line remained weak and bleak and wanted another lower low in price to occur on the 2-hour basis but the AI hype and King Donnie Iran War Mission Accomplished hype sends stocks wildly higher. The possie d from the chart indicators, sans MACD, conspires with the AI and Iran War hype to create the joyous rally. The falling green wedge pattern is bullish. The oversold RSI, stochastics and money flow were agreeable to a bounce. But remember that the MACD line wants to see a lower low than 6350-ish some day forward.

On the top side, the last three candlesticks are at matching highs so you can group the three together as the price high. The chart indicators are all in neggie d so the top is in on the hourly basis and stocks would be expected to receive the neggie d spankdown and fall from here unless there is more AI and war hype talk. The overbot RSI, stochastics and money flow are also agreeable to a pullback in the hourly time frame.

The SPX daily chart is not in full negative divergence as yet. The new price candlestick for Monday will be helpful in gauging the chart indicators for neggie d. The stochastics are the only metric agreeable to a pullback now in the daily time frame. The overbot conditions in the RSI, stochastics and money flow are agreeable to a pullback. The histogram is extended and likely has no where to go but down from here. Thus, mathematicians say thus a lot, that is why the neighbors did not invite Keystone to the block party, the daily chart is near a top but not quite there.

If Monday is a pullback receiving negativity from the hourly time frame, stocks will likely want to recover again for another high on the daily chart until it goes neggie d. Of course, just as positive news and hype talk bounced stocks higher, negative news and hype can send stocks down the crapper. Charts have everything known up to the minute priced into the charts but digestion is needed if new hype or news hits the wires, good or bad.

The daily chart is set up to top this week. Simply watch the daily chart set up with neggie d. The SPX weekly chart will be printing as well providing insight into where exactly this stock market will top out at, say, any day forward or within the next couple weeks due to the obscene complacency. Exciting stuff. Plan accordingly. The Big Bopper died in that terrible airplane crash decades ago along with Buddy Holly and Ritchie Valens. Chantilly Lace.  Hellloooo, baaaabbyy, you sweet thing, you know what I like, a wiggle in her walk, a giggle in her talk, it makes the world go 'round. 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.