SPX S&P 500 Daily and Weekly Charts; Daily Time Frame Bullish but Weekly Time Frame Remains Bearish

The BPSPX, SPXA150R, CPC and CPCE put/call ratios, and most importantly, positive divergence on the SPX hourly and daily charts, announce a stock market bottom at hand. Keystone covered about 80% of the index shorts and flipped those positions long at the opening bell yesterday. The charts could have been posted but there is no point to it since the blogs are not supported well enough considering the tens of thousands viewers each day.

Remember, trading is playing multi-dimensional chess where the time frames are the dimensions. The SPX hourly and daily charts are set up with possie d. The SPX price sank lower and lower, and then matching lows, but the chart indicators ALL started sloping upwards (positive divergence). This means that price is loaded up with rocket fuel and sitting on the launch pad waiting for someone, or something, to light the fuse.

The US Monthly Jobs Report day is the catalyst. The jobs number is a blowout over 3 hundo thousand jobs but the unemployment rate remains at 3.8% now signaling a labor recession. Keystone will have to explain this later. Everybody and his brother say a US economic recession is now completely off the table after the jobs report. It is all happy talk. Au Contraire, Pierre. The US is in a housing recession for 9 months, as well as a manufacturing recession this year, and the labor recession stated last month.

The possie d rocket fuel in the daily time frame is ignited and whoosh, up she goes. It is interesting that price did not touch the 200-day MA at 4208 since it was in the neighborhood. The 4210-ish level is where the 12-month MA is at which determines if the stock market is in a cyclical bull or bear market pattern. The NYA 40-wk MA cross already failed signaling a cyclical bear market ahead for equities.

The charts above are showing many moving averages and other metrics converging on the 4170-4210 range. It is for all the marbles so pay attention as the month plays out. If SPX 4170-4210 is lost, the US stock market will likely crash. It's fun.

But for now, the possie d, falling green wedge and oversold RSI, stochastics and money flow, on the daily chart, and toss in a lower band violation, all say up and away (bullish). The middle band that is also the 20-day MA at 4357 is an upside target. Also, the H&S neckline (see previous chart) is at 4340.

There is also a gap fill (orange circle) needed at 4370-4400 (includes the 100-day MA at 4393) and the 20-wk MA is at 4404. All of these numbers serve as upside resistance targets; 4340, 4357, 4370-4400, 4404.

So the bulls likely have legs on the daily basis but the Congressional mess continues as explained below. The lack of a House speaker creates negativity. The new moon peaks on Saturday, 10/14/23, so stocks may be selling off and weak Friday through Monday.

Putting the happy talk aside, note that the SPX weekly chart remains weak and bleak. Thus, the relief rally will likely be short-lived (a few days maybe week or two). The SPX weekly chart will reexert its negativity and it wants lower lows with the SPX price on the weekly basis going forward.

On the weekly chart, the blue circle shows a Tweezer Bottom. Price makes a matching and lower low and the RSI is positively diverging, barely, but this activity will conspire with the positive daily chart to help boost price higher. Ditto the oversold stochastics on the weekly chart that are agreeable to a relief move higher.

However, the weekly chart indicators MACD, histogram, stochastics and money flow, remain weak and bleak wanting the SPX to print lower lows on the weekly basis. Thus, the positivity in the daily time frame needs to play out and then price will likely roll over and drop again to produce lower lows on the weekly basis.

Do you think there is a battle royale planned at the 4170-4210 range? It will likely act as a magnet going forward and where the fate of the entire US stock market will be decided. Remember that Royals song by Lorde? Click your fingers to the one hit wonder.

If you were short, you got punched in the face on Friday. Stocks should move higher in the daily time frame so you have to decide if you want to take the pain or immediately jump ship. When the daily chart goes neggie d, the long positions can be dumped and flipped short. If you are a longer-term player and holding some shorts, you may consider letting the trades remain in place since the SPX weekly chart is weak and bleak wanting further lows in equities on the weekly basis (later this month or by early November the SPX will be below 4200).

Congress is a mess with the House leaderless giving Speaker McCarthy the boot. There may be a vote mid-week for a new speaker and if that fails, fear and panic may return in force since the House will be a complete mess.

The House republicans display incompetence when in the last election, aside from the abortion issue, the 'glaring theme of those elected was competence'. Americans are sick of the republocrat and demopublican filth and scum and simply want to 'elect responsible capable competent managers to office'. It is not rocket science, and Keystone knows rocket science.

The Jordan character wants the House speaker job but he is Trump's boot-licker and puppet and comically, the orange head provides an endorsement for Jordan; it is the kiss of death. Jordan should have told Trump to keep his mouth shut. The endorsement guarantees that not one single democrat will vote for Jordan.

In addition, it sets up the moderate republicans in the House to be little b*tches and buckle under to the whims of King Donnie and the right wing of the party, and vote for Jordan. That is probably not going to happen. The interim speaker Patrick McHenry will likely end up the speaker until the November 2024 election. Channeling Patrick Henry, Patrick McHenry will proclaim, "Give me the House speakership, or give me death!"

It is obnoxious inconsequential political theater since the United States is already gonzo; you're watching the demise of America's corrupt crony capitalism system and living world history in real-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.