The video in this report is only accessible to members
The video in this report is only accessible to members

SPX and QQQ very well could have bottomed last Friday on a perfect 3-month anniversary to the peaks from late July.  However, as discussed in recent days, indices require a daily close back over early October lows to have proof that a larger bounce has begun.  Interest rates look to pull back into late next week, and this likely can coincide with our much-anticipated Equity bounce.  Overall, given widespread technical damage in many sectors it’s going to be important to see more evidence of a rolling over in both US Dollar and Treasury yields to have confidence of a sustainable rebound.

As October came to a close, SPX has the dubious honor of facing its first three-month losing streak since 2020 and only the 2nd time in 33 years that August, September and October have all turned in consecutive negative returns.  (2016 also featured this three-month decline.)

This doesn’t imply that the “bear market is back," in my view. However, given the volatility expectations for mid-November, it means that “much work needs to be done” to repair all the technical damage of the prior month.

It’s thought that a bottom is happening this week which should lead to US Equity rally into late next week...

Unlock this article with a FREE 30-Day Trial!

An FSI Pro, or FSI Macro subscription is required in order to access this content.

*Free trial available only on a monthly plan

Disclosures (show)

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 2/2

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 2 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In

Want to receive Regular Market Updates to your Inbox?

I am your default error :)