SPX S&P 500 Daily Chart; Potential Island Reversal; Price Parked on the 20-Day MA at 7713

The potential island reversal remains on the table. It was previously explained that price gapped up from 7600 to 7630 to create the island. Price comes down to back kiss the base line of the island and will either bounce for the bulls, or die for the bears. The two ways to die are for price to simply slump lower and fill the gap at 7600-7630, or price may drop to 7630, then gap back down to 7600 creating an island reversal pattern.

The SPX came back down but was saved by the 20-day MA support now at 7712.58. Price has respected the 20-day for seven days running but will the support continue to hold? On Friday, the candlestick shows a big battle between bulls and bears with the bears winning that battle but the bulls also win keeping price above the 20-dy MA at 7713.

The standard deviation bands are coming in tight so a huge move is on tap on the daily basis. Tight bands, however, do not predict direction. It is like squeezing a tube of toothpaste. The cap will fly open and it will squirt out but you do not know in what direction.

September is known as a soggy month. Utilities are weak and leading lower a terrible omen for the stock market. The AI hype and consumer spending due to the wealth effect keep the stock market buoyant. Did, or will, the AI bubble pop? Is the wealthy class starting to pull back on their spending?

Everyone is weighing in on Dolly Parton passing. She was a gem putting up with lots of jokes about her voluptuous breasts over the decades but it was always in good fun and not derogatory, and she was always a good sport, and even made jokes about her boobs herself. Dolly knew that was part of her brand and image along with her 13-dollar wigs and rhinestone outfits. The television tributes emphasize Jolene and I Will Always Love You, made famous by Whitney Houston, but very few mentions of the song that Dolly even said was her favorite; Coat of Many Colors. You can only understand that song if you grew up dirt poor. It is like saving the bread wrappers because you put your feet into them as a kid so your socks would not get wet because your shoes and boots had holes in them and it was raining or snowing. Of course other kids would laugh. You learn a lot when you grow up dirt poor in a ditch and end up wealthy. You see the whole gambit of life. Dolly was always generous. That is a good way to be because the pitchforks and torches, that are probably not too far away now, will pass up your estate and move on to the next. Comparing rich and poor, rich is better. 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.