Weekend Report for Monday, October 6
Bottom Line:
From last weekend’s update:
It is highly unlikely the rate of change off the April low will continue. Last week’s dip may be the beginning of something a little deeper and more protracted time-wise than the previous retracements in the indices since the April low. This does not preclude one or more of the indices trading to yet another ATH as part of this process.
I’m wrong if ALL the indices close above their respective recent highs.
I was wrong, or early. The exact same thing can be said again. The incredibly bid US indices continue to make higher highs. There are reasons to be cautious. I really try not to be a broken record and to stay objective, but the reward to risk right now in the indices on the long side just does not look appealing at present.
Video: https://youtu.be/bYNQ9Lm1AmA
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Levels are highlighted on the charts.
VIX and the S&P have been up 5 consecutive days in tandem. I don’t believe this has happened before. Something has to give.
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