SPX S&P 500 Daily Chart; Megaphone (Expansion) Pattern; King Donnie Stock Market Rally; Overbot; Negative Divergence; Upper Band Violation

The SPX daily chart is a plate of spaghetti. Lots going on there. The multi-year lows in the CPC and CPCE put/call ratios signal a stock market top at hand so it is only a matter of letting the charts set-up with neggie d so you can call the top. The SPX 2-hour chart topped-out Friday morning which led to the softness in the stock market yesterday.

The SPX daily chart is topping-out with negative divergence (red lines) although the MACD and money flow are trying to squeeze-out another jog move which would be up-down-up (3 days).

A previous chart explained and called the top in early December with the red rising wedge pattern, neggie d, upper band violation and mean reversion required. The money flow printed another high in December telling price it wanted to see it come back up after any weakness occurs. Price is spanked lower for the back half of December but recovers to the new all-time record high at 6128.18 on Friday, 1/24/25. The red lines show universal neggie d as mentioned above so she is about to begin the big move lower as dictated by the overblown euphoric bullishness and rampant complacency. There are no bears in the stock market.

The H&S pattern was highlighted in a previous chart with the neckline at the blue line at 5870-ish. The neckline gave way but price did not drop very far due to the new King Donnie rally as he was sworn-into office on Monday, 1/20/25 when markets were closed for MLK Day. A potential island reversal pattern was in play where price may have dropped from 5870 to 5780 back down through the gap shown by the blue lines but instead, price simply trailed lower and filled that gap from the November election.

The blue boxes show the two Donnie Trump rallies one for the election and the other right now as he comes into office signing executive orders like the latest king of America. Why was Melania dressed like the black spy from Spy Vs Spy at the inauguration? That was odd. Either she wants to look like a man, or a gangster, or she is paying homage to Mad Magazine.

The economic forum at Davos occurred this week. Davos is where the billionaires go to tell the millionaires how to live. The pricks arrive on private jets, burning fuel like crazy polluting the planet, as they preach climate change. And some of you buy-into that climate change dribble. That's funny. These elite folks are just using you, idiot.

For the blue rectangle for the November rally, when the orange-headed bloviating carnival clown defeated the cackling Marxist/communist, that fractal rolled-over after tagging the upper band and fell to the middle band that is also the 20-day MA. Same-o set-up this time so a drop to the middle band at 5960 and/or a drop to the lower band at 5785 are on the table. The 5870-ish and 5780-ish blue support lines are important going forward. So is the 100-day MA at 5855 which held as support this year.

The volume candlesticks show that the start of the current Donnie rally began with the smart money distributing stock to the bagholders. Friday was also a distribution day where the investment houses are ditching stock and Joe Sixpack, Carlos Bagholder, and Carmelita Sucka are buying the shares caught-up in the King Donnie hype and his proclaimed executive orders. As Yul said, "Let it be said, let it be written, let it be done." America is a crony capitalism system, unfortunately in its final throes, that chooses a new king every four years that decrees and implements executive orders from the throne. If that is what you idiots want, go for it.

The main pattern highlighted in the bowl of spaghetti above is the megaphone or expansion pattern. Price oscillates tagging upper and lower boundaries forming the megaphone shape. The SPX is at the top of the megaphone so a trip to the bottom of the pattern targets 5700-5730. The megaphone shouts, "Sell, Mortimer, Sell."

Are you ready for the fun? Maybe a Black Monday? Maybe a Black Tuesday? 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 Sunday Evening, 1/26/25, at 7:43 PM EST: S&P futures are down -40 points. That is interesting. The dollar is stronger by a hair. USD 107.58. Dollar up, futures down. Bitcoin 101.5K. 

Note Added Sunday Evening, 1/26/25, at 8:01 PM EST: S&P futures are down -50 points. 

Note Added Monday Morning, 1/27/25, at 5:50 AM EST: Dollar moves above and below the flat line overnight now down a hair to 107.29. S&P futures are down at session lows crashing -157 points or -2.6%. The Nazzy futures are off -4.6%. Don't you love the smell of napalm in the morning? Bring in the airships boys, pull your units back sergeants, time to light it up like a birthday cake. Here they come. The AI stocks are collapsing because a DeepSeek outfit in China has produced AI results with technology currently available. Just think of all the billions spent (wasted?), and the commitments to the power industry even nuclear to support AI, and a guy in his basement may have a better solution. It is hilarious. NVDA -13%. META -5%. MSFT -7%. AVGO -13%. PLTR -10%. The Trump tariff threat to Colombia, that has been reversed overnight, also has markets reeling. The VIX pops above 20 to 20.63. The 10-year yield drops -11 bips to 4.51% as traders seek the perceived safety of notes and bonds (bond prices run higher on the demand so yields collapse lower). Remember, don't panic! Don't panic!!.

Note Added Tuesday Morning, 1/28/25, at 5:34 AM EST: USD 107.88. The SPX loses 89 points yesterday, -1.5%, to 6012. The Nazzy Comp and Nazzy 100 both collapse -3.%. Everyone is in a tizzy over the DeepSeek artificial intelligence in China. If the new AI technology was discovered in India, it would have been called DeepSikh.