On Thursday the SPX struck a new all time high but rolled over mid-day from the top of a Rising Wedge to close at session lows.
The SPX gained 42.73 points since last Friday’s close. Yet, over those 4 trading days the NYSE recorded the following net advances/declines:
Monday: -349
Tuesday:-522
Wednesday: +49
Thursday: -485
In total, net declines were -1300, even as the SPX advanced.
While the index rose 42.73 points, the broader market saw more issues declining than advancing—a sharp divergence.
In sum, The Market Trend, defined as a clear majority of stocks declining, is trending lower.
The SPX carved out this stark divergence as it rallied into 6090 (609).
This is the second of our square-out targets for a potential high.
The first was the 6020 region.
The third is 616 or 6160.
609 is important because it is 3 revs of 360 degrees (1080) degrees up from the 349 (3490) October 2022 low.
1080 is meaningful as it is two cubes, 540 degrees X 2.
As you can see from the above SPX the index has closed below the Rising Wedge.
Drops out of these patterns can be sharp.
Today is the Jobs Report. Has the market set the stage for follow thru below its 20 hour moving average.
Breakage below the 20 hour opens the door to Phil D Gap at 6050 or 605.
Is the agenda OpEx Pinball today to the 605 strike.
That’s not a big deal its 25 SPX points below yesterday’s close.
However, the SPX is flirting with breakage below a daily Rising Wedge which could produce a sharp reaction to the 20 day moving average currently at 5990.
In sum, below 6050 opens the door to 6000 and the initial 6020 projection which was hit on November 11th.
Breakage over coming hours/days below this prior swing high from 3 weeks ago triggers a Soup Nazi sell signal.
This is a reversal below a prior swing high within a 20 day lookback with at least a 4 day interval.
That criteria exist should the SPX knife back through the November 11 peak.
It will only take a 55 point drop to trigger a Soup Nazi sell signal.
If that should occur out of this 10 day Rising Wedge/Ending Diagonal characterized by
FOMO Moves in many momo names like COHR, DUOL, PLR, CRM, SNOW, DDOG and MRVL to mention a few.
In sum, today’s Jobs report could provide a catalyst for a drop to the key 6000-6020 region or for a spike to the 616 (6160) square-out level. This is opposite the 666 bear low from 2009.
It also is on the same axis as December 7th which as you recall has beaucoup synchronicity with December 7th, 1941.
Of course a spike to another record high will likely create a further divergence…with the Nifty Names extending as the majority of stocks meandering.
Markets have rallied on Jobs Friday nearly every month this year.
The odds would seem to favor a similar outcome today, though they do not assure it…especially with yesterday’s SPX hourly pattern and the synergy with the Dec 7 attack 83 years ago.
Maybe something, maybe nothing, but 83 “points to” October 24th. This was the day when the market panicked in 1929 and the air rushed out of the speculative beast.