Could Trump’s Inauguration trigger a “Sell the News” event, capping a market rally?

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Could President Trump’s Inauguration be a Sell the News Event?

Could the stock market rally into Trump’s Inauguration to reach the upper boundary of the channel on the weekly chart to finish the blow-off top? More about that in a moment.

The S&P 500 sold off as the Fed lowered expectations for rate cuts in 2025 from 4 to 2 cuts. The SPX selloff broke the lower trendline & is now backtesting. SPX must get back above this trendline. If SPX gets a successful backtest, then it may fill the gap at 5783 before resuming the advance.

Again, I still think SPX will likely make new all time highs to reach the upper boundary of the channel on the weekly chart to finish a blow-off top, regardless of a bigger pullback or not. However, I”m still open to all possibles as I believe a top is forming.

If SPX can get a bigger rally over the next 3.5 weeks to reach the weekly trendline (the Trump Pump Rally as we’ve seen since election day) , then SPX might peak and finish the blow-off top with President Trump’s Inauguration on January 20th, which could be a sell the news event. SPX may also try to peak just before the inauguration.

While Wall Street likes Trump’s economic policies (except for the tariffs) & the stock market has gotten a “Trump Pump” since the election, no political figure can stop the coming recession, the damage has already been done & recession indicators have already flashed. Recession will likely begin in Q1 or Q2 of 2025. The stock market will top before the recession starts.

Keep in mind that SPX can be easily manipulated up or down on very light volume over the holidays.

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