Upon the higher price print the indicators display universal negative divergence with the two green lines turning neggie d with the new price high so price was spanked lower into the closing bell. The RSI never made it to the overbot territory but all indicators are neggie d across the one-month time frame and the shorter few-hour time frame. The expectation is that the market bears will send stocks lower from here, however, as always, the Fed lurks in the shadows ready to manipulate stocks higher.
Federal Reserve Vice Chairman Stanley Fischer who was the mentor of both former Fed Chairman Bernanke and ECB President Draghi, and now the right-hand man for Fed Chair Yellen, speaks at 1:30 PM EST. Thus, the bulls may pin their hopes on more Fed chatter to pump stocks higher and stocks may idle until his words are known after lunchtime. If the Fed was not manipulating markets, the chart would send stocks lower but since we live in different times where the central bankers are the market, Fischer's speech must be monitored. If he does not provide dovish talk, then the technicals will take over as described above sending equities lower. If Fischer flaps dovish wings to pump stocks higher, another price high will then result with the turnover to the down side delayed for a day or two. The Fed may use a tag-team approach to goose stocks since Yellen speaks tomorrow and she will flap her dovish wings.
Memorial Day is Monday and US markets are closed. Typically, stocks are buoyant the two days preceding a three-day holiday weekend. Thus, if Fischer spews dovish talk to pump markets higher, he may succeed in keeping stocks elevated into and through the holiday weekend, sending the RSI into overbot territory, and the bears will have to wait until Tuesday or Wednesday to start the move lower for equities. 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.