$S&P 500(.SPX)$ breadth is the most washed out it's been since the October lows. Monday was a nice bounce day on the index after three brutal sell-off days, but $S&P 500(.SPX)$ is still below its 200D moving average.
From a monthly range, Aug, Sept, and Oct months have closed in red. Maybe very low chances that November will close in red?
A few things to consider before we go and get bullish again:
Could now be the reversal as we enter into November or was today a dead-cat bounce?
Will upwards seasonality start to do its thing or continue to get crushed post-FOMC?
Are funds done selling off for tax and rebalancing reasons?
What’s your opinion? Do you have confidence in November? Welcome to Share the great insights you’ve read and discuss with tigers?
Below are some insights from experienced analysts for more consideration:
1. Quant Jim @qckisa, CIO of quants.com
NAAIM shows the participants are mostly out of equities, but not much bearish speculation or fear. The breadth on NYSE also shows signs of accumulation despite sharply lower prices in large cap indices. November is seasonally favorable, looking for a bottom this week. $S&P 500(.SPX)$ target to 4380.
2.Our authorized KOL @tomthetrader1 from X Platform commented that:
At the surface of the market the $S&P 500(.SPX)$ , $NASDAQ(.IXIC)$ and $DJIA(.DJI)$ all rallied > 1% meanwhile breadth remains nothing short of horrible. Many more stocks made new lows on Monday. Rallies like today are not the type to get me excited. My speculation remains that the 3950-4100 range will build out a correction base.
3. Here's a visual on the $S&P 500(.SPX)$ levels that Katie Stockton, founder and managing partner of fairlead strategies discussed on @SquawkCNBC
Monday morning...a rebound appears likely this week from oversold extremes, and if 4180 is reclaimed, that would leave the breakdown unconfirmed in a bullish development...conversely, a decisive close below it would increase risk to secondary support.
Image
4. Regarding the safe area of $S&P 500(.SPX)$ in short term,Point-Blank-Trading@PointBlank_Algo pointed:
$S&P 500(.SPX)$ bounced as expected from double support 4100 important support in this chart To break the current bearish channel, $S&P 500(.SPX)$ should go tomorrow straight up beyond 4350.
Image
Image
Regarding November trend, Kieran, Founder @traderseed_io said:
$S&P 500(.SPX)$ NOVEMBER SEASONALITY. Usually November spells the end of some difficult months in the equity markets and the beginning of the Santa rally
Image
What’s your opinion?
Do you have confidence in November?
Welcome to Share the great insights you’ve read and discuss with tigers?
Comments