“What’s your cape size son?” Honeymoon In Vegas
It’s been a pretty smooth uptrend since April 21st when the April 21st low was successfully tested.
That is the day the SPX looked like it was starting a new leg down; however, the next session April 22, the SPX gapped up. It never stopped.
This is the power of a pattern I call Flying Elvis (from the movie Honeymoon In Vegas).
The market looks like it’s failing after a flight to the topside; but then the parachute opens and stocks lurch skyward.
When markets don’t do as expected, it’s usually a good idea to listen to them.
Each time the SPX 3 Day Chart has turned down (which has only happened twice since the April 7th low) it has defined a low.
The third time is bound to be a charm for either the bulls or the bears.
If we get a change in character, where it does NOT define a low, the market will be taking your cape size.
The presumption is fireworks ahead…no later than mid-June and maybe immediately.
It’s Gann-polloza.
Saturn entered Aries. So one of his time keepers vibrates off his zero point as Aries is the first sign of the zodiac.
Jupiter, his other time keeper, entered Cancer on June 9 which as discussed yesterday is a big deal as Gann pointed to Cancer (69) and Jupiter entered on 60.
His two timekeepers are changing signs in a tight time band.
As swell Jupiter and Saturn square each other on June 15.
This is coinciding with extraordinary solar activity. Cycle 25.
Solar Cycle 25 started in December 2019 (when Covid broke out) and reaches its peak activity in July 2025.
Increased solar activity can lead to geomagnetic storms and disturbances.
Markets may experience a ‘nervous breakdown’.
Nothing is certain where the Sun is concerned.
This has implications for all human activity where exuberance and irrationality wins over moderation.
Sound like the market to you?
The bottom line is Volatility is going to come out of nearly two months of hibernation
It would not be surprising if a Black Swan is waiting in the wings.
The recent action in TSLA in the last week is testament to volatility swarming.
In 5 sessions TSLA dropped from 344 to 273 and then rallied back to 326.
On Monday we noted that 360 degrees up from last weeks 273 low is 324.
TSLA struck 326 on Tuesday.
Now that TSLA has encountered Phil D Gap 360 degrees from low, a pullback would be the normal expectation.
Despite the SPX rallying to a new high for the move on Tuesday with a top tick close, many Generals were in retreat.
CRS sold off sharply down 7 points.
EAT got indigestion leaving another Topping Tail for a Charlie’s Angel sell setup.
STRL shed 12 points before bouncing back some.
GEV and CEG cooled off.
Hot IPO’s CRWV and CRCL retreated.
In sum, this week is opposite 6t14/615 on the Square of 9 Wheel at a time when the sky is prepping fireworks—if you believe in that stuff.
Like yesterday, the SPX had ‘high tick closes’ on May 9th, prior to a sell-off.
As well February 19, the all time high, was a ‘high tick close’.
“What’s your cape size son?”
If the SPX opens below 6016-60210 the prior hourly recent swing highs, the expectation is for the SPX to retrace its entire last upswing from 5769 over coming days.
That is because the index is working on an Ending Diagonal.
Stocks fall fast when the chute fails to open when the market jumps out of an Ending Diagonal.
