This Chart Just Rolled Over

The broader market is continuing to show selective pressure beneath the surface. While the major averages have held up relatively well thus far, capital has been sharply rotating away from certain pockets of financials, particularly areas tied to alternative asset managers with private credit and equity exposure. This is one of the latest sectors to get derailed as the companies are garnering A.I. related fears. Leadership has narrowed, and in a market where participation thins out, the weakest charts tend to separate themselves quickly. One name in that space has moved from simple underperformance into a technically decisive downtrend.

That name is KKR & Co. Inc. (KKR). Our proprietary Profit Surge Dashboard first flagged it as trendlines rolled over sharply, accompanied by a persistent sequence of lower highs and lower lows — the clearest definition of a bearish structure. In mid-January, the 24/52-day MACD crossed decisively below its 18-day EMA, flipping negative and confirming that downside momentum was not just present, but accelerating. For traders, that combination of structural weakness and expanding negative momentum often signals that rallies are being sold rather than accumulated.

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✅ We trained an algo to scan 2,985 stocks and spot upcoming “Profit Surges” in advance. See it in action here. No credit card required. Go here to see the ticker it just spotted… ⚡

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With a chart this heavy, stepping in front of it with outright stock exposure makes little sense. However, the options market presents a more strategic approach: KKR’s contracts currently carry meaningful time value, creating an opportunity to structure an in-the-money put debit spread with defined risk. In its current configuration, this spread offers approximately 63.9% profit potential if KKR continues lower, moves sideways, or even rebounds by as much as 10% by expiration — a setup that allows for multiple paths to a favorable outcome, without requiring a dramatic collapse. It’s a tactical way to align with the prevailing trend while controlling capital at risk.

For traders who appreciate disciplined, income-focused structures like this, our Options for Income Newsletter delivers similar fully actionable trade ideas each week. We outline the complete entry framework and the reasoning behind every setup. Right now, the first month is available for $1 — a straightforward way to see how we approach opportunity in this tape, check it out today!

Wishing You the Best in Investing Success,