Vacation season is officially in the rear-view mirror. Almost every school in the country is done with summer and back to the grind. And the next break in the action won’t really occur until the Thanksgiving Holiday. Look for volume to start climbing.
Let’s skip the fluff and get right to the chase: the technicals are still showing bull signals at this time. The media cycle is all aflutter about trade deals and the woes of the presidency. Meanwhile, earnings are up, and interest rates are still tame. This seems to be the only thing market participants care about right now. Speculating on what out-there news story will take down Trump just hasn’t been profitable.
So what do the technicals tell us? So far, the 2900 level is the next battle. While markets closed at new highs, there may be some consolidation between 2870 and 2910 or so while participants settle into this new range. Otherwise, the markets could shoot up toward the 2940 levels this week.
Over the weekend futures got as high as 2912.50 before pulling back to start this week. The early indication is that the pull-back is likely to lead to an opening level similar to last Friday’s close. It looks like the underlying momentum could turn positive though, pushing things higher. If this market gets a little push, it could climb very quickly.
For the week, look for a positive bias. It appears one of two likely options are in the set-up: 1) the market does some back-and-forth between 2870 and 2910, or 2) the market finds its footing early and climbs passed 2925 while hunting for 2940 or so. If option 2 happens, 2910 should become a new line of support for the week.
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