Extra Uncertainty for the Inventory Market: Which Path Subsequent?…

Conclusion

At this time’s session is prone to open on a constructive be aware, with the S&P 500 rebounding after yesterday’s almost 1% decline. Will the market method its latest highs and the 5,800 degree once more? For now, it appears prone to proceed its consolidation.

Traders are awaiting Thursday’s Client Worth Index launch and the upcoming quarterly earnings season.

Final Tuesday, I wrote “The important thing query is whether or not the uptrend will proceed regardless of overbought circumstances. Whereas no clear unfavourable indicators have appeared, the rally appears overstretched.” The query stays: is that this a topping sample earlier than some extra significant downward correction or only a consolidation earlier than one other leg up?

I opened a speculative quick place within the S&P 500 futures contract on September 16.

In my Inventory Worth Forecast for October 2024, I wrote “the market prolonged its uptrend in September after rebounding from the early August low. No clear unfavourable indicators have surfaced; nonetheless, a correction might nonetheless happen. Traditionally, October is a seasonally weak month, particularly throughout its first weeks. Will the inventory market dump quickly? Though financial coverage easing helps the bulls, uncertainty surrounding geopolitical dangers and the upcoming presidential election should still weaken sentiment.”

For now, my short-term outlook stays bearish.

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