SPX S&P 500 Monthly Chart; Huge Relief Rally Occurs Due to the Belief that the Iran War is Mission Accomplished; SPX Prints New All-Time Record High at 7026.24

April 15th is Tax Day. Tax Man. After becoming depressed at seeing the money you give to the corrupt wasteful government, you hope for April 20th, 420, to come fast to cheer up. We worked through the multi-week downturn that was forecasted by the negative divergence at the top. Stocks fall into a cyclical bear market but that only lasted 10 minutes. It is typical stuff for the SPX to bounce off the critical 12-month MA at 6621 that dictates whether the US stock market is in a cyclical bull or cyclical bear market. It will be revisited. For now, the cyclical bull continues its reign.

A sharp relief rally is expected and occurs in spades with big gap-up moves. A parabolic move higher off the V bottom was not expected. Certainly, a piddly couple months of downside is not a multi-month down move that was dictated by the negative divergence. There is likely far, far, more Hell to pay as the year rolls along. The hype about the Iran War ending, with oil prices falling, sends stocks to the moon. Short-sellers panic, willing to cover at any price, launching the stock market into the stratosphere; the buying frenzy was on. Dip-buyers trip over each other throwing money at stocks afraid they may have already missed the rally that will go to the moon.

There was a gap-fill at 6900 that was needed and the bulls easily regain that level as buying begets more buying and more AI and chip hype creates a party atmosphere.  As explained in the previous monthly chart, when the top was called in February, there is no need for price to return to new record highs again. Here comes price teasing up towards 7K again for a potential new all-time high.

Let's recap the top call for the stock market. It is not rocket science, and Keystone knows rocket science. The rising red wedge is a bearish pattern. The RSI and stochastics are overbot agreeable to a pullback. When price printed the matching high in February, the indicators can be assessed for negative divergence. Remember the couple-three month wait for the MACD line to cooperate and finally roll over to create neggie d and join the other indicators? That marked the top. Price was at record highs but ALL the chart indicators are neggie d so the top is in on the monthly basis. Easy-peasy. The SPX weekly chart was also in neggie d so you knew it would be a multi-week spankdown, and it was.

You also knew, since Keystone told you, that since utilities remained elevated, the down move would not be an all-out crash. This will occur as the utes join the negativity going forward. The down move in February and March was only about -9% to -10% for the SPX and then it quickly recovered almost all of it due to the ongoing uber complacency in markets. People believe in good times ahead no matter what happens. War, pass the s'mores.

So that brings us up to now and trading is all about what have you done for me lately? Price needs another 30 or 40 points to print a new record high above 7K. It is close enough to taste it so it would not be surprising if it happened today, but again, due to the neggie d, there is no reason for price to come up again for a new high. There was not any more fuel in the gas tank to take the SPX higher on a monthly basis but the Iran War oil hype and ongoing AI and chip hype is enough to push price back towards the record.

The hype does not matter if you look at the thin maroon-colored lines in the right margin. The SPX cannot be in official neggie d now since price did not yet print the matching or higher high compared to January and February. It is so close, let's say it is good enough for government work and price is at a matching high, therefore, the chart indicators can be assessed for neggie d. Mathematicians say therefore and thus a lot, thus, that is why we are never invited to the fun parties.

Note that the RSI, MACD, histogram, stochastics and money flow are all sloping lower as price makes the matching high. The negative divergence remains, so even if the SPX makes another record high, whoop-de-doo, it will only be another long-term top on the monthly basis. If you are steadfastly bullish, as is probably over 90% of the stock market participants, you need at least one of those indicators to move higher above the previous highs in Jan-Feb. It is the only way that the bulls can be successful as the rest of the year plays out.

Look at the volume candlestick for this month. It is mid-month, so double the length of the vertical bar and it will be far short of the January and February selling volumes. That is not good if you are bullish the stock market for the months ahead. You can check the final volume candlestick in a couple weeks at month-end.

The ADX shows that over the last 5 years, despite the record highs in price, the stock market rally is not considered in a strong trend higher. The pink boxes show that it started to indicate a strong trend higher, but both times that petered out. Now the ADX is even lower as stocks approach new record highs more bad news and negative divergence type stuff for the bulls.

The Aroon shows nearly all the bulls, 88%, still believe stocks will go up forever and always no matter what happens. That is called uber bullishness, optimism, complacency, and fearlessness. No wonder the relief rally was a rocket ship. A couple months ago, all the bears also believed that stocks will go up forever. Not so now. About 50% of the bears remain bullish but 50% of the bears are now bearish introducing the feeling of negativity ahead. The negative cross should occur for the Aroon perhaps in the summer, or sooner.

Price violated the upper standard deviation band so a move back to the middle band, the 20-mth MA at 6300, was on the table but price did not honor that target; it should going forward. The lower band is also a downside target now at 5346 moving higher. Price will likely tease lower towards a 5-handle as the summer and Fall play out.

What does all this mumbo-jumbo mean? It means that stocks are cooked on the multi-month long-term basis. The weekly, daily and hourly charts can be assessed to pinpoint the top ahead. If you are a young person, and saved up 10K or 20K, and want to jump into the stock market thinking you are the next Jesse Livermore, you ain't. You will lose your shirt and only serve as the bagholding sucker. If you made huge gains, or any gains in stocks, over the last few years and months, take the money, fool. Do not worry about capital gains.

For any young person, you should sit out the stock market for the next one to two years; at least wait until 2027 before thinking about putting any money into that steaming pile of dung on display above. Let the wealthy insiders hold the bag; they are counting on you to be the sucka. Of course, if you are experienced at trading, you should look at shorting all rallies going forward for the remainder of the year or at least until we get into the summer-Fall period. If you have to hold stocks long for various reasons, be sure and hedge heavy against those holdings buying protection and shorting stocks for counterbalance if the rules allow.

The weather is beautiful and it is fun spending another day at Itchykoo Park. It's all too beautiful. 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 6:39 PM EST: The bulls win the day and print a new all-time high at 7026.24 and new all-time closing high at 7022.95 the first record closing high above 7K. The prior all-time high was at 7002 at the end of January as February started. Keystone went looking for his commemorative 'SPX 7K' hat from back then, and found it in the garage. It has an oil stain on it so he tossed it in the garbage. The matching and higher high with the SPX price occurs so the indicators can be assessed to see if neggie d is in place across all the metrics. And it is, just like the chart above shows. The SPX is topped out on a long-term multi-month basis. It can play around at these new record highs for a few days or week or two, but the chart is bearish. The bulls have momentum on their side because the move higher over the last 3 weeks is parabolic. To hone in on the top, that will occur going forward since the CPC put/call ratio has completely collapsed indicating off the charts bullishness and euphoria, use the weekly, daily and hourly charts. It would be nice to wait until Monday to check the weekly chart since a new candlestick will be underway. If you bring up the SPX daily chart, you see the gaps higher in price as the orgy continues. Money flow is neggie d and the stochastics are overbot and neggie d, but the other indicators remain long and strong. This hints that a couple jog moves are needed to provide time for the RSI, MACD and histogram to go neggie d. So down, up, down, up, for the top on the daily basis, would be Tuesday. Keystone's 80/20 Rule says 8's lead to 2's on the way up so 7018 led to 7022. The 6800 opened the door to 7200 that has been sneaking around in the bushes since January. Considering the upside momo and jumps of 50 or a 100 points per day, there may be a spurt to 7220-ish as the bigtime top (or any time before that). The SPX tops out at 7026 today. If it tags 7028, that likely opens the door to 7032. Looking at the 2-hour chart, the indicators are pretty much topped out. Money flow wants one more jog move so with 2-hour candlesticks, that would be say, 2 to 4 hours. Thus, mathematicians say thus a lot that is why Keystone's invitation to the Spring Jubilee was lost in the mail, stocks should top out tomorrow around noon time or in the afternoon. That makes sense since the new moon is at hand and will peak on Friday. Housing Starts are uber important Friday morning. Thus, marry the time frames together like playing multi-dimensional chess. The 2-hour is topping tomorrow. The daily does not want to top until early next week. The weekly time frame is a mystery until we can see a new candlestick on Monday but it may want a couple more weeks of these highs before topping out. The monthly chart says the top is locked in now on the monthly basis. How about stocks topping tomorrow, sliding on Friday but not making much headway lower and then printing new record highs on Tuesday/Wednesday. That may be the top, you will have to watch the charts, it all depends on the weekly chart. Once the weekly chart is confirmed with neggie d perhaps as next week begins, that would mean the top is in. If it needs to run for a couple weeks, it may want that 7200-ish print that will likely stand for many months if not years forward. The charts light the way. It's fun. That Sydney Sweeney model chick has a new ad for jean shorts but it falls way short of the classic Daisy Duke's. She had the best jean shorts and Roy serenaded her with Pretty Woman at the local honky-tonk. Daisy could not control herself and hugged and kissed Roy. The ladies are powerless when they hear the tongue roll. It happens every time. Sydney needs to watch Daisy in the Dukes of Hazard reruns for tips on jean shorts.

Keybot the Quant Turns Bullish

Keystone's trading robot, Keybot the Quant, flips back to the bull side at SPX 6526 as the choppy slop continues. The bulls regain SPX 6503 and NYA 21740 creating yesterday's stock market orgy. Bears obviously need to reverse both if they want to growl again. Bulls will build on their relief rally with stronger chips.

Keybot the Quant

SPX S&P 500 Daily and Weekly Charts; US Stock Market Crashes -9% in 8 Weeks Now in a Cyclical Bear Market

The United States stock market, the S&P 500, SPX, crashes -9% in only 8 weeks. That beating is going to leave a mark. The Wall Street analyst targets of 8K plus are farther away each day with only 9 months remaining in the year. The business media calls a -10% pullback a correction and a -20% drop a bear market. These definitions are hokey and not of much use but everyone follows them. Let's do the Hokey Pokey. The Dow and Nasdaq indexes are in correction with the S&P 500 knocking at the door.

Traders donning the "SPX 7K" and "Dow 50K" hats jinxed the US stock indexes. The SPX tops at 7002 and the Dow at 50513 and the lofty perches only lasted as long as it took to grab a cup of coffee in the break room. The S&P 500 (SPX; the US stock market) crashes -9% in 8 weeks. The Dow (INDU or DJI; the dirty thirty) crashes -10.6% in only 6 weeks. The Nasdaq Composite (COMPQ; lots of tech stocks) crashes -12.7% the worst performer. Pretty tech, boosted by AI, is the darling for the last 3 years but the relationship has gone sour. The Nazzy100 (NDX; hottest high-flying tech and AI stocks) crashes -11.6%. The S&P 600 small caps (SML) crashes -9% in 6 weeks but is off the low. The SML crashed -10.3% in only 5 weeks but over the last week has pulled itself out of the -10% correction territory.

Three metrics that do dictate the cyclical bull market versus the cyclical bear market are the SPX 12-month MA cross, the NYA 40-week MA cross, and the SPX 150-day MA slope. The SPX 12-mth MA is at 6497 with price below at 6369 ushering in a cyclical bear market. The NYA 40-wk MA is 21707 and this failed on Friday afternoon, creating the sick finish into the bell, with price down to 21632 ushering in a cyclical bear market. 

The SPX daily chart above shows the 150-day MA and you can see that the slope flattened and is rolling over to the downside (sloping lower) ushering in a cyclical bear market (red box). If you are long any stock or ticker, you want the 150-day MA sloping higher, otherwise, you will lose your shirt. If you are short, you want the 150-day MA sloping lower (downward) to verify the negativity ahead, otherwise, you will be wearing a barrel.

All three metrics call out a cyclical bear market ahead despite the media's stupid -20% bear market pullback number not even registering as yet. The -10% correction has not occurred yet and that would be a 700-point drop to 6300 that is nearby. Price has to regain the 150-day MA to flatten the moving average line and try to get it sloping higher again but that appears to be a tall order. The bulls are going to fight like Hell tomorrow morning to pull the NYA back above 21707 to stave off the bears. Watch this closely.

Sticking with the daily chart, Keystone described the topping process in real-time since last Fall. The SPX topped out at 7002 on 1/28/26 and crashes -9% to 6369 in only 8 weeks. Remember when Keystone told you the initial drop in the SPX, due to the neggie d across multiple time frames and the outrageous complacency and fearlessness in markets, would be from 200 to 800 SPX points? We are down 633 points so far. Note the red rising wedges on both charts (bearish pattern). Remember when Keystone told you that the collapses from rising wedges can be quite dramatic? That blue channel is very dramatic.

Stock trading is all about what have you done for me lately. The prior SPX daily chart shows the SPX starting to set up for a relief rally in the daily time frame but the weekly chart remained weak. The relief move was short-lived due to the negative news about the Iran War. The high price of oil will doom the global economy. Everything got sold off on Thursday and Friday, and thrown out the window including the baby, the bathwater, and the sink itself. Timmy Trader freaked out because clients are calling non-stop asking about how much money they are losing. He could not take the pressure and ran across the trading floor and jumped out the window but fortunately, he was on the ground floor.

Price makes a lower low, gapping lower, so the indicators can be assessed for positive divergence and a potential bottom. The green lines show that the histogram, stochastics and money flow are possie d and ready to send price higher, ditto the oversold RSI and stochastics. However, the RSI is printing a hair lower, into oversold territory, and the MACD line also remain weak and bleak. Thus, a couple day jog move is likely needed to give time for the RSI and MACD to set up with possie d. Do not be surprised if the relief rally starts right away, or anytime in the holiday-shortened week ahead. Markets are closed for Good Friday.

The negativity on the Iran War creates the lingering sour mood for equities after the neggie d sealed the top and started the slapdown 8 weeks ago. The Aroon shows that 100% of the bears expect stocks to fall forever while almost all the bulls also believe the same. This behavior verifies the extreme negativity that typically occurs at a bottom when a relief rally begins. The ADX shows that the downtrend in stocks is a STRONG downtrend for the last 2 weeks. Strong downtrends tend to sustain themselves over time.

Price has violated the lower band so a trip back up to the middle band, also the 20-day MA, at 6676, and dropping fast, is on the table. The black circle shows that the Death Cross should occur at the second or third week of April, say within the next month. The daily chart should set up to begin a bounce this week. Stocks are usually higher through the full moon that is Wednesday. Stocks are typically higher into a holiday that is Friday. When stocks fall during a month, the final couple days or so are usually higher and that would be tomorrow and Tuesday. These are bullish weights trying to counteract the Iran War.

The BPSPX was on the verge of providing a buy signal but that was snuffed out due to the Iran War negativity. The BPSPX is at 36 so watch for a six percentage-point reversal to 42 to confirm a buy signal for stocks. A lot of metrics are lining up for a relief rally but it all depends on King Donnie.

The SPX weekly chart shows the tight band squeezes at the start of last year and the repeat this year. Both squeezes result in down moves. Tight bands forecast a big move but do not predict direction.

Note that the indicators remain weak and bleak on the weekly time frame except for the money flow and ADX and the stochastics are oversold agreeable to a bounce. These positives will join the daily chart and help create a relief rally, but the negative indicators forecast lower prices ahead on the weekly basis. Trading is like playing multi-dimensional chess except time is the dimension not space. The SPX 2-hour and daily charts are setting up to bounce but the weekly and monthly charts remain weak forecasting lingering long-term sogginess in equities.

The Aroon shows that all the bears believe stocks will go down forever, like the ADX for the daily chart, but the bulls still remain somewhat upbeat that stocks will recover, like stocks always did over the last couple decades (due to Fed intervention). This is bad news for bulls. They are going to keep believing in the stock market as the weekly and monthly time frames transport them on the Highway to Hell.

A relief bounce should be at hand this week anytime unless the Iran War explodes into WW III. All is not calm on the Western Front that is now the Houthis shooting missiles and rockets at US military bases. The weekly chart lost the 50-wk MA at 6478 so a back kiss of this important level would be in order. The 12-mth MA is 6497 so this area at 6470-6500 would be a potential upside target for a relief rally in the daily time frame going forward. This would also be a move higher to the top of the downward-sloping blue channel. Keybot the Quant remains short. 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 4/1/26 at 6:07 AM EST: The SPX regains the 12-mth at 6503 and the NYA regains the 40-wk MA at 21740 creating the stock market orgy yesterday. Nothing to see here, move along, move along people, nothing to see here, please disperse, nothing to see here. The short-lived cyclical bear market reverses back into the cyclical bull but will it last? This battle is likely only beginning. It may be in play all year long.

Keybot the Quant Turns Bearish

Keystone's trading robot, Keybot the Quant, whipsaws back to the short side at SPX 6497 yesterday. What else is new? The half-year of sideways choppy slop continues. The stock market is making a major cyclical decision  these days. The failure at SPX 6501 opens the door to a cyclical bear market ahead. Bulls need to regain this level as fast as possible. A failure of NYA 21701 will verify the SPX failure and usher in the cyclical bear market and negativity in the stock market going forward. One side or the other will flinch.

Keybot the Quant

Keybot the Quant Turns Bullish

Keystone's trading robot, Keybot the Quant, flips to the long side yesterday morning at SPX 6620. The choppy slop continues this year. S&P futures are circling the drain but chips and the NYA index will tell the path forward.

Keybot the Quant

SAP Weekly Chart; Is AI the Second Coming?

How's the AI hype going? The key company that comes to mind when gauging how useful AI applications may be in the future is SAP. Keystone worked with SAP software 25 years ago when they came on the scene. It was funny back then since anyone that worked directly for SAP would take offense if you called the company and software 'sap'. In America, a sap is a fool, dolt, jackass, and/or idiot like the corrupt republocrat and demopublican politicians. The name is pronounced as its initials; 'S, A, P'.

The kiss of death opening a downward path for AI-related stocks was a couple-three weeks ago when a couple companies using SAP software had made comments that the AI stuff may currently not be worth the extra costs. The companies did not see much benefit in productivity versus the disruption and moving to something new or an add on to existing platforms. Good Night, Irene.

If a premier software giant in making businesses run efficiency is having trouble selling their AI wares, the benefits of artificial intelligence are likely much further out in the future. The chart says it all. The AI hype is in full swing for about 3-1/2 years already. Time flies. And Emperor Jensen at NVDA and others continue to profess great things and promise magical kingdoms once AI, that is nothing more than a large language information aggregator, is implemented. Everyone is still waiting. Jensen said in the speech the other day that (software) applications will be the key for AI going forward.

The upside of the party is fun with traders and investors tripping over each other to buy shares. Everyone wants a piece of the action and to taste the favorite flavor of the day. The party is in full swing into the beginning of last year when people do start looking around and asking, "Where's the beef?" SAP plummets over the last 9 months losing half its value. Joe Sixpack, Bonita Bagholder, Sammy Sucka and Carmelita Retail bot into the hype last year just in time to be left holding the bag. Suckers all.

In 2003, Keystone was brought in to help an engineering company that was struggling. After marking up a drawing to the point it looked like someone bled all over it, Keystone told the managers that it was the most shoddy engineering he has ever seen. They did not like that. At the same time, the company was trying to implement SAP software to improve efficiency and company operations from sales  through manufacturing, production and shipping. It was a mess. It was obvious that they did not understand the work flow through their own business. You cannot make something efficient if it is a pile of pig slop.

After Keystone's descriptive and derogatory language to the managers, he figured they would show him the door so he went back to his office and surfed the internet waiting for the news to hit the road. The manager comes in and says the owner/president wants to talk. Wow, they are going to send Keystone off with a big kick in the pants by the big guy himself. The owner instead told Keystone that he knows he has a problem with the engineering as well as the operations of the facility and asked him to stay on and help them fix their problems and implement the SAP ERP platform. The president set Keystone up in an empty office next to him on the second floor. That was a sweet gig for the next couple years.

Back then, many businesses operated by the seat of their pants. As employees were added, company duties became a gray area with many people doing many different tasks and jobs overlapping. Orders would come in and be slowly walked through the mess of a system. The first step was organizing the company, all the jobs, writing job descriptions, identifying the work flow through the company, etc... After that, the SAP software was far easier to implement and for it to make a difference. The company lost about $3 million when first trying to implement SAP but as it worked out over the following years, it definitely made them a better company and it is thriving to this day and double the size it was back then.

What is the lesson in all this? Years ago, companies were very inefficient but not anymore. Businesses have gotten rid of dead weight, implemented software such as SAP, and everything runs lean and mean. Companies starting out nowadays are lean and mean and starting with business software platforms in place from the get-go. It is a different world.

Now AI, the Second Coming, is supposed to be part two of this great efficiency awakening. Probably not. Some departments in companies are down to one person already. You have to leave someone in each department to at least turn on the lights and make coffee. The benefits of SAP business software were obvious from 2000 to 2015 but by 2020 companies have that game down pat. The work flow from the sales department to manufacturing is smooth for most companies nowadays.

Would spending lots of money on new SAP software, plus the disruptions of implementing the new methods, make enough of a difference to justify the cost. Some are already saying no. Why mess with something that already runs fine? If each Friday you punch a button on the keyboard and all the reports print out effortlessly, that are already set up in the system and on printers, why would you mess with all that for the sake of adding new software that produces the same report? If you can cut your lawn with a push mower and it takes an hour, but you can do it in 45 minutes on a lawn tractor, is it justified to buy a $5,000 piece of equipment instead of a $300 push mower? The evolution of AI in all its many facets will be interesting going forward.

A smart manager will nix the implementation of AI now. Why be a guinea pig? Let them work the bugs out and develop AI software that will actually make a difference. A smart manager will tell the AI salesman to check back in a couple years. If your company is running efficiently, and everyone is happy and making money, why mess with it? The same idea holds for buying a new car model. Never buy a new model car in its first year because there will be bugs and problems. Ditto the second year model. But if you like the style and want to own one, buy the third year model because by then any bugs are already fixed.

Artificial intelligence will have its day in the sun, but it will likely take far longer than the current group think believes especially from the enterprise resource planning (ERP) perspective. AI's main function will be for military, government and surveillance applications. 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.

SPX S&P 500 Monthly Chart with 12 MA Cross and NYA NYSE Composite Weekly Chart with 40 MA Cross Dictate if Stocks Fall into a Cyclical Bear Market

Okay, it was all fun and games, until now. It is time to separate the men from the boys. The two most important metrics of the United States stock market (the S&P 500 index; SPX), are the SPX 12-month MA and NYA 40-week MA crosses. If you were on a desert island, you would know if the stock market was in a cyclical bull or cyclical bear market pattern by these two parameters.

The SPX failed at the 12-mth MA at 6502 on Friday and the NYA lost the 40-wk MA at 21661 both ushering in a cyclical bear market and the big flush lower in stocks. How's all those SPX 8K and higher calls by the Wall Street analysts going? It is customary to give out hats at certain milestone levels for the SPX or Dow like "SPX 7K" and "Dow 50K" but this is always on the way up. Why? It should work in reverse so in the future we should receive "SPX 6K" and SPX 5K" and even "SPX 4K" hats if we venture back to these lows. Right?

As the Friday session played out, the bulls fought like Hell to regain the 6502 level to keep the growling and slashing bears at bay. This makes the call easy going forward.

If the NYA regains 21661 out of the gate tomorrow and moving higher, the selloff is over and a recovery rally is starting with rainbows and puppies going forward, despite the Iran War where King Donnie Chump changes his plan and strategy, is there one?, every 10 minutes. Trumpski said thing are wrapping up but now he is sending Marines and threatening to blow-up Iran's power plants. Huh? What? Confusion and chaos continues just like when little King Donnie was handling the COVID-19 pandemic. People have short memories.

Now Putin, that Chump idolizes, says he sides with Iran. The World War III dominoes fall into place one at a time. We will find out this week if the orange head has created a mess in the Middle East. Donnie is realizing that he may not be the one in control of ending the war he started. Trumpski did not form a coalition of nations or explain to Americans what he was doing, why he thinks Iran is a big threat, or the exact plan and mission of the war. It remains a mish-mash pile of slop with Donnie reacting to each crisis that surfaces as a result of his own actions.

Keep an ear open after 4 PM EST this afternoon because King Donnie will likely talk to try and manipulate the markets. Futures open at 6 PM EST so you can see what may be in store for markets to begin the week and how Asia will trade.

If the SPX falls back below 6502, the cyclical bear market begins and carnage and a downward bias in stocks will continue for many weeks and months forward. Choose your poison. Poison Ivy playing lead guitar. Mad Daddy. The Goo Goo Muck song in the modern-day Wednesday Addams stuff is a resurrected Cramps tune. 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 3/27/26: The battle for cyclical market control continues. The SPX 12-mth MA is 6501 and the NYA 40-wk MA is 21701. The SPX failed below 6501 yesterday creating stock market negativity. The NYA remains above. If NYA fails below 21701, the gates to Hell will be wide open as stocks collapse. Bulls need SPX above 6501 as fast as possible to stave off the bears.

BPSPX Bullish Percent Index and SPX S&P 500 Weekly Charts at or Near Washout

The bullish percent index for the SPX is at 35 indicating a washout at hand. The six percentage-point reversals on the BPSPX daily chart are important as well as the 70% and 35% levels. On the way up, a move above 70 is an extra bullish signal but at the same time stocks are getting at lofty heights.

On the way down, 35 is a key level that indicates a washout at hand. A majority of traders and investors have finally turned negative after all the dips were bot for many weeks. Now it is sell the rips instead of buy the dips. Everyone expects stocks to collapse, so typically, equities will defy the consensus and stage a relief rally and the pops and rallies in bear markets can be very strong to the upside.

The stock market is teetering on the edge of a cyclical bear market with some metrics saying yes and some saying no so give it a few more days or week or two. The BPSPX bottoms coincide with the SPX bottoms since panic and fear is rampant and some investors proclaim they want out and will never play the stock market again. Thank you very much, I'll take those shares.

The Iran War is a wildcard since stocks move on the noise. King Donnie Chump proclaims that the war is wrapped up in Iran and he can close things out--as he sends Marines over to the war theater. Huh? What? He has no plan, or changes his mind sometimes the same day, and then he moans that other countries are not helping. He wanted help in the Strait of Hormuz since he is in over his orange head, then berates everyone, now says he needs no help and others can take care of the doggy dirt mess he created. That's Our Donnie. Just like Daddy took care of everything for little silver spoon Donnie.

Speaking from the perspective of a chemical engineer that has designed, built, and operated these LNG liquefier and terminal plants, as well as many other important processing facilities worldwide, it is heartbreaking to see the destruction. It will take a few years to rebuild. But barring any horrible news about the Iran War, and especially if there is good news, stocks should create a bottom any day and a recovery rally will begin. If not Monday, then it is likely to begin sometime next week.

Can stocks still retreat? Of course they can but the BPSPX tells you that the selling is way overdone for now and a relief rally is needed to digest the losses. If you bring up the BPSPX daily chart, you see the tumble lower. That chart has to reverse back up by six percentage-points to provide a bullish confirmation signal for the recovery rally.

Thus, mathematicians say thus a lot, that is why Aunt Agatha told Keystone to be quiet at the St Patty's day banquet, from 35, a move up by the BPSPX to 41 would be a confirmation signal for the bull rally in progress. Monday is key since there will be developments on the weekend. Also, the orange one will provide comments between 4 PM EST and 6 PM EST on Sunday, ahead of the futures markets, to try and manipulate prices and sentiment. He must think we all are Dumb. Or maybe just happy? I'm not like them. Kurt was dead 5 months after the Unplugged concert. 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.

SPX S&P 500, CPC and CPCE Put/Call Ratios Daily Charts; Panic and Fear Finally Starting to Appear

After a drop in the SPX from 7K to 6624, a nearly 4 hundo point loss, -5.5%, panic and fear is finally starting to appear in the stock market. Sometimes people do not believe so you have to shove it down their throats until they gag on it. Then they believe. The stock market complacency and uber bullishness was a constant theme late last year into this year. This was proven by the low put/call ratios (red circles).

When the year started, there was a tinge of fear with some traders worried about a repeat of the prior year when stocks fell after everyone proclaimed nothing but upside ahead a la Irving Fisher in 1929. That spike in panic and fear created the rally shown by the green bar on the SPX chart. That rally was a run from a bottom at 6824 to 6985 let's call it a 160 points.

Thus, mathematicians say thus a lot, that is why Keystone was not invited to the spring cotillion this Friday, the start of year fractal may repeat now. That would create a rally from 6624 to 6784 if it follows the previous fractal.

Thus, tread carefully if short since a relief rally is likely at hand. As previously explained, the hourly and daily SPX charts are encouraging for a relief rally due to the positive divergence, and a couple chart indicators on the weekly chart agree with, and will help create, that buoyancy. However, indicators on the SPX weekly chart remain weak and bleak so lower lows in SPX price are desired going forward on the weekly basis.

Thus, Keystone has to work on his thus's if he wants invited to the April Fool's Day bash at the Amvets Club, stocks will likely stage a relief rally bounce over the coming days but weakness should reappear a week or two out. Any trades depend on your time frames. If you are willing to hold your shorts for a while and endure a relief rally, that may be strong, pay no mind since the additional weakness ahead in the weekly time frame will take care of that trade in the future.

If a shorter term trader, take some profits on shorts and flip them long but you must be nimble if playing long and keep close attention. The Iran War is not going well and things may go to Hell in a handbasket at anytime. King Donnie Chump, that started a major world war, now is telling Iran and Israel to deescalate. Trumpski is in a mess and in way over his orange head. Donnie threatens everyone daily and the bloviations from the 80-year old showman have less of an impact. Iran plans to keep attacking ignoring Trumpski's words. Chump started a war that he can no longer control or finish.

For today and the next few days, however, be alert to a relief rally starting. When the Whip Comes Down. There is no cooler guitar player than Keith Richards. Humorously, at this point, the drugs and alcohol is what keeps him alive. 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 7:46 PM EST: The SPX drops -0.3% to 6606. The LOD is 6557. Price came down for an initial look at the key 6550 horizontal price support, and bounced. The 200-day MA support gives way at 6619 that now becomes resistance. Price is making a bounce or die decision at the 200. If it bounces, watch the 10-mth MA resistance at 6665. The SPX 2-hour chart is positively diverged wanting to see a bounce. The SPX daily chart is possie d sans the MACD that remains weak and bleak and may want a jog move of 2 days to place the bottom in the daily time frame (up tomorrow, down Monday for the bottom with MACD going possie d). It is same-o analysis. Stocks should bottom in daily time frame anytime now through Monday. Today's low at the critical 6550 may have been the bottom. The rally will be in the daily time frame only since the weekly time frame will eventually want lower lows in SPX price on the weekly basis going forward. There is happy talk that the Iran War may end quickly. Someone says this every day. That Joe Kent dude that quit Trumpski's security team looks like Eddie Munster. King Donnie needs asked how many drones are remaining in Iran and in how many locations across that vast nation? It tells you how long the war will last. Is there two drones parked at 1,000 different locations around Iran to be used anytime? if so, it is another Nam. For now, people want to feel Happy. If anyone wonders what rock 'n roll is, that's it.

Note Added 3/21/26: The bears pull out the knives and the blood flows on Wall and Broad. The SPX collapses -100 points, -1.5%, to 6506, on Friday, 3/20/26. LOD 6473. The SPX takes out the Thanksgiving low. All of you that bot stock for your children at Christmastime and during the holidays gave them a gift that is losing value fast. Mommy, I wish you would have given me the e-bike instead. Junior, do not forget, you are in it for the long-term. Mommy, in the long-term, I'm dead. Humorously, people ask what is a long-term investment? That is a short-term trade that went the wrong way. No one is laughing about the ongoing Iran War and the likelihood that high gasoline prices will remain for a couple years or at least many months. People that use their vehicles for work are screwed. Diesel is over 5 bucks. Oh well, time to pull out the gasoline syphon. Back in the energy crisis the late 1970's, times were tough so folks would syphon gasoline out of cars and put it in their car. You would suck real hard on the end of the tube to get the syphon going and sometimes be spitting out gasoline--but you did not care since you were saving a few bucks thieving off someone else. There was then better syphons available that have a little hand pump that can begin the suction and syphon and get the gasoline flowing into the container, while looking over your shoulder for the cops. There is a lot of rhyming with the 1970's that is occurring these days. Sadly, helicopters went down in the desert when Jimmy Farter tried to save the hostages in Iran and fast forward 50 years, a refueling plane goes down in the desert when Donnie Chump tries to destroy the radical Islamist leadership in Iran.

ADBE Adobe Daily and Weekly Charts; Oversold; Positive Divergence; Lower Band Violations

Keystone puts on the Kevlar gloves as he attempts to catch the Adobe falling knife. He also has Band-Aids and gauze available if the knife penetrates. Talk about a piece of excrement. ADBE was a stock market darling a long time, until it wasn't. ADBE crashes from 550 to 250 in 1-1/2 years a -55% drubbing. That's gonna leave a mark. Adobe was ridden hard and put away wet. Nasty. She asks, When Will I Be Loved? Linda had the one in a million voice.

And of course what happens when you are down and out? Yep. Someone comes along and kicks you in the face. It is always darkest before, it turns completely black. At the end of last year, fear ran through the internet stocks and private credit tickers due to AI disruption fears. Adobe fell off a cliff at that point and the investors that held on to the Adobe piece of crap through thick or thin finally gave up and threw in the towel. You know what happens when everyone gives up on a stock, right? It is usually, but not always, time to buy it.

Note that a nice bottom was in for ADBE at Thanksgiving and a positive divergence launch was in play (thin green lines). Price pops for a couple weeks and flattens in December but the bad AI news hit and she fell out of bed. Positive divergence is in play now across all indicators for both the daily and weekly charts (green lines) so a bounce should be on tap. Keep watching the money flow on the weekly chart. It is possie d but showing further possible weakness due to the exodus from the stock. If money flow makes a lower low, ADBE may need to jog for a couple weeks at these lows before rallying.

Note the purple arrows on the weekly chart showing the tight standard deviation bands. Tight bands signal a huge move on tap but do not predict direction. Bloop. The squeeze was down the rabbit hole of despair.

Price violates the lower band on the weekly so a move to the middle band at 305, and falling, is on the table. The daily chart barely tagged the lower band but it is good enough for government work. Price may still want to come down to officially tag 240 with a big ole sloppy wet kiss like pretty little Bunny provides. Bunny is a Labrador.

Adobe was taken to the shed out back behind the abode and beaten severely, however, the worst may be over. A bounce would be expected over the short-term (a few weeks). ADBE should bounce from here due to the possie d explained above but if not, it should bounce over the coming days. Simply make sure the possie d remains in place since that is the fuel that will shoot price higher.

Keystone bot ADBE long this afternoon during the stock market beating and will give her a whirl for a little while. The longs that have held on to the beaten-down and frazzled stock the last few months are asking pretty Adobe to not hurt me, don't hurt me, no more. What Is Love by Haddaway with shuffle dancers. 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 3/21/26: The week ends with a bigtime stock market selloff with traders running for their lives. ADBE pops almost +1% in the down tape but is down a smidge on the week. Adobe should begin receiving its possie d rocket launch.

Note Added 3/26/26: ADBE and the whole software sector are sold off with nothing spared. ADBE drops down to 237. AI promises more gains that will negatively impact software companies. ADBE will take a couple more weeks to place a choppy bottom since money flow slipped lower due to long-term holders finally giving up the ship. Same-o with WDAY so look at that one as a potential long. Others to consider washed-out and on deck for a recovery rally are ESTC, SNOW, NCNO, APPN and others. The Iran War dominates sentiment these days.