Nothing's changed with the SPX weekly chart. It is in negative divergence with a multi-week down move already started or about to begin. The stock market is a pile of sideways pig slop for the last 3-1/2 months. The chart above shows stocks going nowhere over the last month.
Last week was interesting, however, because of the hangman candlestick. It typically shows up at the top in the stock market or at a top for an individual stock. The long tail shows that the bears are starting to exert a stronger and stronger influence on equities. The euphoric bullishness and complacency continues in the stock market with bears as rare as hen's teeth, but the chart tells you that the bears are becoming stronger.
The hangman falls perfectly in place with a neggie d top so time will tell if the confluence is meaningful. If long the market, you should begin girding your loins. The holidays are in the mix.
The stock market is closed on Thursday for Christmas Day and then on Thursday, 1/1/26, for New Year's Day. The Santa rally is the period from Christmas Eve through the first couple days of the new year so this year the period between 12/24 through 1/2/26. The gain for the Santy rally is typically no biggie only marginal or a percent or two. People are all excited because they are jackasses and do not know what the actual Santa rally is; nowadays, any upside in stocks for December, like this year, is automatically called the Santa rally. People are stupid and that is something you cannot fix.
It will be fun to see if the hangman provided the ominous foreshadowing of what is to come; the executioner pulling back the lever that hangs the US stock market. The Hangman's Song. 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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