Rally up to SPX 3800-30 still likely but important to see Yields peak out

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

$SPX index has shown some minor stalling out, but yet trends remain positive and it still appears likely that a push up to 3800-45 can happen into Friday and/or next Monday.   SPX as of Tuesday’s 10/19 close remains up about 200 points in four days’ time from last Thursday’s lows, and we’ve seen some constructive participation not just from Energy, but from key groups like Financials, Industrials and in particular, Transportation stocks.  Even Technology has managed to rebound with XLK outperforming SPX over the last five sessions regardless of rates pushing higher.  Overall, seeing Treasury yields peak out will truly be important to helping any rally have longevity in November.  At present, a push to 3800 area in the near-term might represent an area to lighten up for traders, but expect that the maximum window of any near-term volatility likely should be over by early November.  Thus, buying dips still looks prudent, and expecting rallies in November into December still seems like the base case scenario.  Bottom line, getting some relief from US Dollar and/or Yields rolling over should likely result in a much stronger rally.  As of now, this remains a near-term bounce within a downtrend, so an upcoming catalyst looks important as to...
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