- Reaction score
- 2,016
Stocks opened sharply lower on Tuesday. They've been trying to battle back to fill in the gap left open, and in the process, the S&P 500 is trying to fill in the open gap from Oct 24. So far the action remains a typical pullback to the breakout area, while filling in gaps, at least on the S&P 500...
... but the recent weakness in the small caps has been a little more serious as we saw a major breakdown at the open on the S-fund chart. It has since regained the 50-day EMA but it remains below the trading channel, so today's close, or at least the close over then next day or two, is key to keeping this bullish trend alive.
With October being the 6th straight month of gains for the S&P 500, it is probably be due for a losing month, right? Well, 68% of past 6-month winning streaks lasted to 7 or more months.
Yields are down but the dollar is ticking higher again, and that is leading to losses in gold, oil, and crypto.
... but the recent weakness in the small caps has been a little more serious as we saw a major breakdown at the open on the S-fund chart. It has since regained the 50-day EMA but it remains below the trading channel, so today's close, or at least the close over then next day or two, is key to keeping this bullish trend alive.
With October being the 6th straight month of gains for the S&P 500, it is probably be due for a losing month, right? Well, 68% of past 6-month winning streaks lasted to 7 or more months.
Yields are down but the dollar is ticking higher again, and that is leading to losses in gold, oil, and crypto.
