SPX and DJIA just hit new all-time highs; Cruise-liners break out Array ( [cookie] => 8b48a5-c3607f-3c6d24-823e96-2a0b89 [current_usage] => 2 [max_usage] => 2 [current_usage_crypto] => 1 [max_usage_crypto] => 1 [lock] => 1 [message] => [error] => [active_member] => 1 [subscriber] => 0 [role] => fsi_macro [visitor_id] => 592517 [reason] => [method] => ) 1
US Equities remain on good footing, despite the recent backing up in US Dollar and US Treasury yields over the last couple of weeks. Both SPX and DJIA have successfully pushed back to new all-time highs, and NASDAQ should approach its own all-time highs within the next week. Moreover, most of Europe along with Japan is now signaling that a coming pushback to all-time highs could be getting underway. Overall, I expect that risk assets should still work well into October expiration before a possible stall out into a traditionally very negative seasonal week for stocks. For now, technical structure, momentum, and breadth have improved markedly in recent weeks, while sentiment is not yet bullish enough to think Stock indices might peak out. SPX target lies at 5835, and QQQ should find resistance at 503-505.
The combination of Technology, Industrials, and Financials sectors all breaking out of triangle formations back to new all-time highs is thought to be particularly good news for the prospects for US Equities over the next week.
While some short-term deterioration in market breadth has occurred over the last week on the sideways action in US stocks since mid-September, Wednesday’s move is likely to allow for continued strength in the broader indices over the next 3-5 trading days.
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