The market continues the rally that began in early October. Yes, there have been some severe down days mixed in, but $SPX has generally been overcoming one resistance level after another and closing gaps left on the way down (most recently, the island reversal gaps from early September have been filled). This morning's strong job report has knocked the market down 50+ $SPX points, but that is not necessarily a rally killer. The most recent breakout above resistance at 4030 led $SPX to reach not only the downtrending 200-day Moving Average, but the downtrend line for this bear market. Both are near 4100. A strong move above 4100 would break that downtrend line, but it would not necessarily be the end of the bear market. The next resistance level above that is the August highs at 4325.
Join Larry McMillan as he discusses the current state of the stock market on November 28, 2022.
The stock market ($SPX), has continued to rally this week, so the bullish case gained some traction across a number of factors. The close above resistance at around 4000 was a positive step in terms of price and sets up a move to at least the 200-day moving average or the 4070-4100 area.
Join Larry McMillan as he discusses the current state of the stock market on November 21, 2022.
Join Larry McMillan as he discusses the current state of the stock market on November 14th, 2022.
The rally that began in mid-October was a fairly strong one that was backed by massive oversold conditions that existed at the time. By the time it got to 3900 (400 points off the lows), it was a bit vulnerable, and when Fed Chairman Powell made some very negative comments, the market quickly gave back 200 points. After that FOMC meeting, the market remained rather leery of the CPI data that was to be released early in the morning of November 10th. So, it traded in that 3700-3900 range while it waited. The CPI data was modestly encouraging (although it remains to be seen what the Fed thinks of it), and the market exploded to the upside as many traders and investors think that interest rates have peaked.
Join Larry McMillan as he discusses the current state of the stock market on November 7th, 2022.
Join Larry McMillan as he discusses the current state of the stock market on October 31, 2022.
The bulls are attempting to extend the rally that began in mid- October. Whether this fits in the broad category of October being a "bear killer" or not remains to be seen, but the breakout over 3800 on the $SPX chart this week was a positive development. As long as the Index holds that level, it is significant.
