Dead man walking. Stand back everyone. Dead man walking. The SPX is walking the Green Mile, folks. It is time for him to pay for his greedy sins. You can't help him anymore. He's walkin' the Green Mile. Stand back.
Charts are in neggie d wanting a spankdown. Put/calls are screaming rampant complacency and euphoric bullishness. Analysts are already calling for SPX 8K when 7K did not print yet. Investors expect the rate cuts to send stocks to the moon rewarding America's wealthy class once again. The Santa Claus rally is guaranteed by all market participants. Everything is bullish. Even the bears are now bulls. What could possibly go wrong?
Watching this major stock market top play out is getting old. It is a very atypical top for sure. After the top at Halloween, and subsequent neggie d spankdown as forecasted, stocks recover after a couple weeks of downside action due to the happy rate-cut talk, AI hype and King Donnie's optimistic bloviations.
So here we are again around 69 hundo. It is surprising that it made it this far up but it will not be surprising if this behavior was the blow-off top like the dotcom bubble (when everyone, and his brother, currently says the blow-off top is another year or two away). The all-time top is 6920.34 on 10/29/25 and the all-time closing high is 6890.89 on 10/28/25. These all-time records occurred over a month ago; it does not seem like it.
The SPX weekly chart remains set up with negative divergence across all indicators. It is time for the long stock holders to take their medicine. Bend over and grab your ankles. A multi-week smackdown will occur as everyone is bullish and celebrating the holidays. If long stocks, your holiday is about to get ruined. Save yourself before it is too late.
The SPX is now in an M-Top formation, or double-top, Mazel Tov in 2026, and the final leg lower is expected going forward for the coming weeks. She bounced off the 20-wk MA a couple weeks ago now at 6605 so watch this level. If it fails, there will be Hell to pay. Utilities are collapsing while no one is looking forecasting big stock market trouble ahead.
The Fibonacci retracements are shown for the multi-month rally from April to now. The first 38% Fib retracement is at 6154-ish right at that strong price support at 6200-ish. The 50-wk MA is there at 6160 moving higher. When she starts falling apart, that should be any time, maybe Black Monday?, the 6605 will likely fail and price will seek the solid support at 6150-6200. That would be a nice drop that would get everyone's attention. Are you ready for this fun ahead or are you stuffing your fat face with holiday treats, cookies and candy no longer paying attention to the stock market? You will have to learn a lesson.
Plan for a large pullback in the stock market that will run for several weeks. Keybot the Quant remains long but remember, the robot travels the smoothest path through the year so it does not catch the exact tops or exact bottoms. It will be telling if/when the quant flips short. Keystone is holding index shorts betting against the US stock market and will likely bring on more shorts going forward. It is time to flush the stock market turd. The bulls yell, "Blasphemy!" The bulls demand that stocks go up forever proclaiming that it is "Never Enough" as Patty sings.
Here is a great poem about the markets, economy, and the season, from Poet Tarzana Joe. It is called "All Indicators Indicate" by Tarzana Joe.
Pay attention folks. If you are holding stocks on the long side, you are about to be taken to the shed out back and whipped. Do you want to be whipped? Are you ready to face your Waterloo? "Waterloo" by Stonewall Jackson. 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.
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