Small-caps start to kick into gear again into Election

Equity trends remain bullish from early August but have shown mild consolidation over the last two weeks which has resulted in a 2% decline in SPX. While various sectors like Technology, REITS, Industrials, Energy, & Utilities have all drifted lower since mid-October, there hasn’t been sufficient damage towards thinking a big selloff is underway. (Evidence of a bounce beginning started to resurface on Election day and would gain credibility if/when SPX gets back above 5811.) Both US Dollar and US Treasury yields are all getting close to levels where they arguably should stall out and turn lower this month. Overall, I suspect that rallies in both US Equities and Treasuries occur after the US Election as uncertainty gives way to clarity, at least with regard to congressional races. SPX should find initial technical resistance near 5900-5935. Meanwhile, QQQ should find resistance at 503-505.

As discussed above, evidence of the gap at SPX-5811 being filled and exceeded would then point towards a move back to new all-time highs in SPX, to near 5950 in all likelihood.

Tuesday’s About-face looked to be a step in the right direction for market bulls.  However, more proof, in the way of a daily close above 5811 to fill the gap from late October, would serve to add conviction to this rally.

Subscribe Today to FSI Macro

If you are an existing member, to see your special offers.

Monthly

-15% $169/mo

List Price $199

Savings: $30

Claim This Offer!

Annual

-32% $1,622/yr

List Price $2,388

Savings: $766

Claim This Offer!

At FS Insight we offer a 30-day risk-free cancellation period for all new memberships.

View all FS Insight products with our exclusive Black Friday offers!

Why FS Insight

FS Insight helps you invest confidently with the same research banks and hedge funds use.

Daily Updates from Tom Lee

Start your day with Tom Lee’s pre-opening bell report. Navigate the trading day with Tom’s daily macro minute video and updates on key developments.

Real-Time Alerts from Tom Lee and Mark Newton

Stay in the loop with FlashInsights, real-time commentary on market-moving events delivered instantly from our research heads to you.

Daily Technical Strategy Report
and Video

Tactical opportunities and actionable signals, including daily in-depth analysis on current market technicals.

Monthly Market Update Webinars Presenting Timely Top Ideas

Get a behind-the-scenes look at our top stock ideas. Learn what makes each pick timely at our monthly webinar and Q&A with Tom and Mark.

Access Stock Lists Developed by Tom Lee and Mark Newton

We offer a variety of stock lists across methodologies and time horizons. Choose the portfolio that best fits your investment style.

Engage with Tom and Mark

Your membership includes members-only webinars and fireside chats. Join Q&As with our research team, CEOs, and industry experts across AI, geopolitics, and more.

Disclosures (show)

Sign in to read the report!

We have detected you are an active member!

Ray: c85018-9dae20-eb73e5-6121b5-22543d

Don't Miss Out
First Month Free

Events

Trending tickers in our research