Wednesday, May 5, 2021

SPX, OEX, and SPX Again

Ever since we unlocked the secret that no other society in history was able to unlock (namely: "how to create endless wealth without actually producing anything"), the market has continued to act a bit screwy.  Yesterday was no exception, nor will today be.  This is the one constant of late... call it the Powell Certainty Principle.  

Interesting to note that OEX (the S&P 100, which consists of all the companies who have charted at least one Billboard Top 40 single during the past year, such as McDonald's, with their number one hit "I'm Lovin' It") reached the equivalent zone that SPX was "supposed" to.

Bigger picture, SPX still hasn't tested green.  There is, of course, no rule that says it has to...  hang on, I've just been handed the rule book from my research team (our cats) and on page 30, Section 10, Paragraph III it says, and I quote:


So I stand corrected.  But SPX still hasn't tested green, of that much I'm certain.  (Also, I just noticed that every subsection of this so-called "rule book" contains that exact same sentence.)

In conclusion, if bears can hold 4193, then the market could still be on track for a test of the green trend line (or below).  If they can't, then the diagonal outlined on the first chart would become one possibility.  Trade safe.


  1. I like the ending diagonal theory, but I was wondering if you think there could also be ending expanding diagonal (with 1st peak of 4/16)

  2. You are among other things....a very funny guy. Thanks for a few hearty chuckles.