The SPX created the rising wedge, overbot conditions and negative divergence about nine days ago which resulted in the spank down. But the bulls are feeding off of the Fed's crack cocaine so the markets recovered in quick order and now printing matching highs as compared to the prior top. Note the purple lines showing universal negative divergence again for all the indicators. Price is only one point away from the 1565.15 all-time closing high. The phrase heard most often today was, "Just print it and be done with it already." Everyone is waiting for the 1565.15 closing high, but the all-time intraday high remains at 1576.09.
The small rectangles show the distribution taking place over the last six weeks. Each higher print in price is followed by a sell day of higher volume. This is the smart money distributing to Joe and Jane Sucka, who are now caught up in the daily bullish media hype. The little guy is jumping all-in long right now for fear of missing out on the upside orgy. But, Joe and Jane are the bagholders, every top needs them. It is nice of them to always show up to be fleeced. If the 1565 is taken out an upside orgy will occur into the blue circle and price will seek out the top rail of the channel. If the chart has its way, price will simply start lower at any time. If the bounce occurs tomorrow, the purple negative divergence will likely remain, so that will only delay the roll over by a couple days. Projection is down at any time. 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.
