If you ignore the news, the technical picture for this market looks strong. The past several weeks have seen volatility reign in, so the over-bought conditions are a lot less menacing than they were a few weeks back. As of right now, traders seem content with 2900 has the support for the SPX.
With Canada making some last-minute concessions to save (most of) NAFTA, the markets also seem to be pleased. Futures are higher. Don’t look now, but the sideways pattern of the SPX may have just been broken. If so, 2950 should be on the radar in the next week or so.
For the week, the first level of resistance is 2940 — next level is 2960. Support continues to hang around the 2900 level.
We’re also at the start of Q4. Many analysts have been raising expectations since Q1. This may end up being a tailwind that makes for a pretty decent late-year push. A 5-to-7% move higher from these levels is not out of the question for the quarter.
IMPORTANT DISCLOSURE INFORMATION
Please remember that past performance may not be indicative of future results. Different
types of investments involve varying degrees of risk, and there can be no assurance
that the future performance of any specific investment, investment strategy, or product
(including the investments and/or investment strategies recommended or undertaken by
BigFoot), or any non-investment related content, made reference to directly or indirectly
in this blog will be profitable, equal any corresponding indicated historical performance
level(s), be suitable for your portfolio or individual situation, or prove successful. Due
to various factors, including changing market conditions and/or applicable laws, the
content may no longer be reflective of current opinions or positions. Moreover, you
should not assume that any discussion or information contained in this blog serves as the
receipt of, or as a substitute for, personalized investment advice from BigFoot. To the
extent that a reader has any questions regarding the applicability of any specific issue
discussed above to his/her individual situation, he/she is encouraged to consult with the
professional advisor of his/her choosing. BigFoot is neither a law firm nor a certified
public accounting firm and no portion of the blog content should be construed as legal
or accounting advice. A copy of the BigFoot’s current written disclosure statement
discussing our advisory services and fees is available for review upon request.