Outlook for Next Week
At the time of this writing (1:35 p.m. EDT), stocks are recovering off the lows of the day (DJI + 90, SPX - 5, COMP - 35) as markets continue to digest the recent move by the Fed. Next week the earnings and economic calendar is relatively light, outside of next Friday's PCE report, but perhaps this can be conducive for recent bullish momentum (i.e. in the absence of news the path of least resistance is higher). Yes, we are still in the midst of bearish seasonality, but the technicals look encouraging (more on this in the "Technical Take" section below) and today's minor consolidation is relatively bullish given yesterday's rally. As long as the SPX can remain above July's prior all-time closing high (5,667), it feels to me like the path of least resistance is higher. Therefore, my forecast for next week is "bullish." What could challenge my outlook? On the technical front, an SPX close below 5,667 could introduce concerns of a false breakout to all-time highs, which would likely introduce some additional selling pressure and an overall down week.
https://www.schwab.com/learn/story/weekly-traders-outlook
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- zoomzi·09-24TOPBullish outlook confirmed.1Report