To The Moon

$Apple(AAPL)$ $Tesla Motors(TSLA)$ Major US stock averages ended the final session of the third quarter with another day of losses on Friday...

The latter coming on top of the recent weakness...

Investors would still be concerned about the aggressive policy of the Federal Reserve...

$DJIA(.DJI)$ and the $S&P 500(.SPX)$  hit new lows for 2022 while the $NASDAQ(.IXIC)$ remained just off its previous June low.

Ten of the 11 S&P sectors ended in the red in the last session of the quarter...

Blame it on PCE prices which rose more than expected by forecasters...as well as comments from a senior Fed official pointing to a hawkish stance by the central bank...

From a technical analysys point of view:

This would give SPX entrenched in a bear market with a break of June support. Oversold indicators...

Investigating in more complexity, market factors could be at play:

We are at the end of the third quarter and some equity managers may need to get rid of certain stocks so that their portfolios do not seem too exposed to a risky stock market.

Read the article : SPX-JPM hedged equity roll...

There would also be autocallable strategies which may have triggered the 3600 zone which could be a low barrier, in order to avoid paying back the premiums...

With that in mind, liquidation could take a break in October...

And let's remember that we are going to enter the fourth quarter cycle, the mid-term electoral cycle...

After a month like this, the major indices could benefit from a rally...still in a short gamma environment...

This is not a buy or sell recommendation, just for informational purposes.

Thanks for reading

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