US Equity indices like SPX and NASDAQ likely can stabilize temporarily following this week’s pullback to challenge August lows. However, it’s imperative that Treasury yields and US Dollar begin to roll over quickly, as further gains could still pressure stock indices a bit more into early October before a bottom. I suspect that any Equity rally next week likely would prove short-lived until more meaningful signs occur of Rates rolling over
Given that Stock indices peaked out near the Rosh Hashanah holiday, it’s always important to be on the lookout for a possible Yom Kippur low to materialize. This could point to a Monday 9/25 bottom for US stocks just as stock indices are challenging August lows.
SPX rallies will need to exceed 4495 to have real proof of a bottom. Until that happens, bounces next week could encounter resistance into end of September/early October and then weaken again for a final “flush”.
The following levels look important next week on a rally:
SPX Futures: 4442-4466
NASDAQ Futures: 15228-15348
DJIA: 34300NASDAQ futures hourly chart is shown below. Despite the market losing its early rally attempt on Friday, pullbacks did not do much d...