Technical Strategy Video (Recorded Monday, October 18th):

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

Key Takeaways

  • S&P and DJIA exceeded key resistance last week that changes the near-term technical structure to bullish for a push back to new highs into December
  • Multiple lagging sectors have started to show improving near-term momentum that give confidence that an “Everything Rally” is indeed likely given no real deterioration
  • Consumer Discretionary has broken back out vs Consumer Staples on a cap-weighted basis, a sign of risk-on appetite returning at a time when sentiment remains muted

Last Friday’s close above 4465 necessitates a bullish view structurally, invalidating the near-term structure as being bearish.  While a move back to new highs shouldn’t be a straight line, technically, it makes a long stance necessary.  Dips into late October should be a chance to buy weakness, and doubtful that early October lows are violated given momentum and breadth improvement. 

The video in this report is only accessible to members

Short-term Technical Improvements:

Traditional technical momentum indicators like MACD have turned back positive while weekly momentum is no longer overbought given September’s consolidationDowntrend from September was exceeded by ...

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