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The video in this report is only accessible to members

Looking back at the start of October, we’ve seen a very nice kickoff to Q4, and almost too nice of a start following over a 5% gain in Stock indices over the last two trading days.  S&P gained more than 200 points, representing the best two-day S&P gain since April 2020.  Breadth showed an even more impressive gain with nearly eight sectors turning in gains of 3% or greater on an equal-weighted basis.  This kind of rapid bounce is normally dismissed by many as being short-covering, and some of the stocks which rallied were indeed former laggards.  However, our pullback into October had multiple reasons for reversing course as has been discussed numerous times in recent days.  Most importantly, sentiment and cycles lined up at a time when seasonality turned bullish while breadth was extraordinarily compressed.  Overall, I suspect that some consolidation could be due before this rally extends too much more, and overhead resistance near SPX-3890 is strong while some backing and filling looks like a real possibility.  Overall, long positioning is favored, looking to buy dips in the days ahead for rallies back higher into mid-October. First important upside target looks to intersect near 3890 and then 3950 on gains.

Source: Tr...

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