Technology has pulled back to an attractive short-term entry point
Array ( [cookie] => 722460-869fa9-577847-391b79-1657d6 [current_usage] => 8 [max_usage] => 2 [current_usage_crypto] => 2 [max_usage_crypto] => 2 [lock] => [message] => [error] => [active_member] => 0 [subscriber] => 0 [role] => [visitor_id] => 208356 [user_id] => [reason] => else [method] => ) 1 and can accesssNear-term US Equity trends are bullish, and SPX and QQQ have pulled back from the highs of the trading channel down to near the lows over the past week. Despite yesterday’s US equity index lows not holding, the undercut of this support does not turn the trend bearish. Technology has weakened this week, but has not broken down, and Technology ETFs like $XLK and $RSPT both are trending near the uptrend line support, which should be important as this first week of November comes to a close. While the bifurcation between large-cap Technology/Discretionary and the broader market has grown more severe, it's still likely that SPX could power higher into mid-November given the intermediate-term momentum and structure of stocks like $AAPL, $NVDA, $GOOGL, and $TSLA. Overall, I expect that US stock indices have entered a much choppier trading environment between now and the end of November. Ideally, this might play out as follows: A short-term rally back to new highs for SPX and QQQ which is then followed by some backing and filling back down to revisit the lows of this channel again into late November. This would align with my cycles and provide a very attractive entry point into late November or the first week of December, before a push back to new high territory.
Thursday’s drawdown failed to sever long-term support for $SPX, and both $SPX and $QQQ pulled back to levels thought to be important.
This doesn’t hurt the short-term technical picture for US Equity indices, and as daily charts show below, $SPX has simply gone from the upper end of its intermediate-term trend channel back to the lower area of this channel.
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