October Bites The SPX

* See UPDATES below...

Notwithstanding the bearish Head & Shoulders formation on the following daily chart of the SPX, its recent plunge below the neckline in the latter part of September, and its subsequent retest and drop lower, it's hovering above major support around 4200.

Also depicted on the daily, weekly and monthly charts is the Williams Alligator technical indicator, which shows 3 moving averages, offset into the future.

Take a close look at the weekly chart. 

A drop and hold below 4200, followed by a crossover of both the green and red MAs below the blue MA would signal further weakness ahead for the SPX, and possibly a retest of 3600, or lower to 3200.

This is one indicator worthwhile monitoring over the coming days/weeks, on all three timeframes, all of which are forecasting further weakness...along with President Biden's disastrous, regressive, reckless, and punitive "Bidenomics" (economic and energy) policies...and, this insightful history lesson on "why previously successful societies implode," as is currently happening in the United States under Biden's so-called leadership, with its descent into fantasies while denying realities, threats, and solutions.

Wake up, America!

If you think such a scenario may be far-fetched, I'd refer you to my most recent post on August 31 in connection with the SPX and investment cycles...that one depicts a much worse plunge that may be in store for U.S. equities over the coming weeks/months.

SPX Daily

SPX Weekly

SPX Monthly

* UPDATE October 6...

"Bidenocchio" strikes again...Joe Biden stepped in front of microphones this morning to brag and lie about "creating" a record number of jobs in September.

However, it pays to read the actual detailed jobs reports, before accepting Biden's version of reality...always. 🤔

Meanwhile, allegations and video of his abuse towards his dog surface...horrible, if true, and at total odds with his, so-called, "lovable Uncle Joe" public image that he loves to portray.

So, always check under the hood before buying a used car...lest you end up stuck with a broken-down, unreliable old clunker...or worse!

Source: ZeroHedge

* UPDATE October 22...

As Joe Biden's "Bidenomics" policies and the economy are imploding, they're also failing to win support with young voters, Blacks and Latinos, who are, instead throwing their support behind Donald Trump, as they compete to win the presidency race in 2024.

Source: ZeroHedge

As I described above, keep an eye on the following weekly chart of the SPX.

We're about to see an imminent bearish crossover of both shorter-term William's Alligator MAs below the longer-term MA on this timeframe.

A drop and hold below 4200, combined with this double crossover will signal further weakness ahead for the SPX.

* UPDATE October 23...

The SPX briefly dropped below 4200, before it closed back above at 4217.04.

As well, the Williams Alligator MAs have now formed a bearish crossover on the weekly timeframe....keep an eye on 4200.

* UPDATE October 27...

By 2:07 pm ET today, the SPX plunged to 4107.71 -- likely regarding these developments in the Hamas/Israel war -- to continue its drop and break below 4200, which began on November 25.

See my comments above for the next major support levels/targets.

Source: ZeroHedge

* UPDATE November 16...

This graphic needs no explanation...😕

And...the "Bidenomics" bashing continues...with good reason...

Source: ZeroHedge

U.S. Perpetual Stock Market Cycles: "Where Are We Now?"

You decide.

P.S. Read more here.

U.S. DEBT CEILING: Biden Had 100 Days To Negotiate But Rebuffed Republicans

N.B. Inflation was 1.4%
when Trump left office
on Jan. 20, 2021

* See UPDATE below...

Insofar as the proverbial "buck stops at the top" saying dictates, this would then apply to U.S. President Joe Biden, who, for 100 days, refused to negotiate with Republican House Speaker Kevin McCarthy regarding the upcoming expiration of the infamous Debt Ceiling and its extension with respect to his proposed multi-trillion dollar budget.

So, here we are, with the presumed expiry date of June 1st fast approaching and no deal has been reached.

The ball is in Joe Biden's court, inasmuch as a majority of the House approved the Republican's bill which raises the debt ceiling (albeit much less than what Biden wanted), with alterations to his budget.

Democrats have not prepared a counter-plan of their own, and neither has President Biden.

So far, Biden has refused to budge on their offer, and talks have now broken down today...with no deal reached...and the President is nowhere in sight, but chose, instead to attend a G7 meeting in Japan.

The following article provides further details on today's failed negotiations and walk-out.

Source: ZeroHedge

As you can see from the following graphic, the rise of America's Debt Ceiling has become parabolic and cannot be sustained, especially with President Biden's budget proposal to raise it by another $5.8 Trillion this year!

And, with a possible recession looming in the midst of, still, high inflation (in spite of higher interest rates, courtesy of the Fed), and bankruptcies already on the rise (stressing banks), it behoves Biden to justify (to the American public) exploding the debt even higher.

Reckless Federal Reserve monetary policies, as well as the Biden Administration's out-of-control fiscal spending and radical energy policies, have led to high inflation (9.06% in June 2022) and higher U.S. debt. 

N.B. Inflation was 1.4% when President Trump left office on January 20, 2021.

Source: RateInflation

Where we go from here is anybody's guess...market players are currently undecided, as well, inasmuch as the SPX is still stuck in its large sideways "Chaos Zone," that I described in my post of March 31, after briefly piercing above its upper edge.

At the moment, price is currently sitting just beneath its channel median, as shown on the following monthly chart.

Failure of the SPX to break and hold above this median and its upper "Chaos Zone," around 4200, could send it back to its lower edge at 3750, or lower to retest 3500, or even 3000.

So, I'll leave you with this little gem...the sum total of Joe's presidency...in his own words...

Seriously, it's no joke! 😕

* UPDATE May 23...

It appears as though President Biden does not take the debt ceiling negotiations seriously and is being seen as negotiating in bad faith...suggesting that there may be some question about the actual default date that has, up to now, been proclaimed as fact by his Treasury Secretary, as described in the following report.

Markets have been fairly subdued and directionless of late, as described above, but just how long investors' patience with this political charade will last is anybody's guess. 

The longer this drags on, there is a greater chance we'll see markets drift lower, until they reach a critical velocity that produces a plunge below major support (3750 on the SPX).

Source: ZeroHedge