Technical Strategy Video (Recorded Friday, October 22nd):

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

Key Takeaways

  • Healthcare, Consumer Discretionary snapping back sharply this week, and six sectors are recording gains of more than 2% over the rolling five—day stretch. Discretionary moved back to new all-time highs on an Equal-weighted basis this week
  • Transportation now higher by 12% in the first three weeks of October, helping to recoup much of its weakness from May. Most sub-sectors tied to Supply shortages, i.e. Trucking, shipping, Logistics are outperforming sharply in the near—term
  • Sentiment has gotten more bullish as a result of the last three weeks of rally. The 10/21 AAII data showed nearly a 20% spread now of Bulls over Bears, the highest since early September, with Bullish percentages up to nearly 47% while Bears lie at 27.8%
  • “Reopening trades” like Cruise-liners, Casinos, Airlines, and some of the Brick and Mortar Retailing, have started to lag sharply again, despite a recent decrease in COVID deaths

Following SPX having completed its third consecutive weekly positive close, it’s interesting to note that the minor stalling out near September highs hasn’t detracted from the positive trend whatsoever this week. SPX managed to recor...

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