This Correction Still Looks Similar to the One in 2022

tomthetrader1
2023-11-01

The $S&P 500(.SPX)$ closes October -2.2% and the $NASDAQ(.IXIC)$ -2%.

This correction still looks and feels similar to the severe corrections that occurred in 2022.

Relief rallies find rejection at the moving averages, and breadth remains consistently negative.

This is in the lower panel of the chart. Next week is 9 consecutive weeks of negative market breadth. The "below the surface" part of the market has been detonated.

So long as price remains below and rejected by this short term moving average I do not think the correction has concluded and favour the 3950 - 4100 range for correction bottom.

This remains the range I will like to take long exposure.

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Rate pause again: Will market stop decline?
Fed will announce rate hike decision on 1st November. Analysts believe that while Powell dismissed the possibility of a rate hike in November, he also left the door open for further rate increases in order not to let the market get carried away. ---------------------- ● How will market move with another rate hike pause? ● What is your investment strategy amid the uncertain outlook?
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Comments

  • 大亮仔
    2023-11-02
    大亮仔
    Too many uncertainies ahead with the constant Israel bombardment. Dow Jones, Nasdaq & S&P still have room for correction before next year US Presidential elections.
  • Chloe G
    2023-11-02
    Chloe G
    You are 100% correct. The market is discounting a war that the US has no control. She has always been the leader in the past but is certainly not today.
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