KEY
TAKEAWAYS
- Over 70% of S&P 500 shares are above their 200-day SMAs.
- SPY and RSP are buying and selling close to new highs.
- We see a bullish continuation sample in a key AI inventory.
It’s a bull marketplace for shares. On the chart under, the S&P 500 SPDR (SPY) just lately broke rim resistance of a cup-with-handle sample and is buying and selling close to a 52-week excessive. The S&P 500 EW ETF (RSP) recorded a brand new excessive in late September and is main the market since July because the bull market broadened. Furthermore, over 75% of S&P 500 shares are buying and selling above their 200-day SMAs.
And that is not all. As famous in our weekly studies/movies, QQQ and the Mag7 ETF (MAGS) broke out of triangle consolidations. We will additionally add slender yield spreads, a dovish Fed and the Chinese language bazooka to the equation. Which brings me to the query: What extra do bulls need? Reply: Nothing. October is right here and an election looms so we may even see above common volatility. Even so, the load of the proof is clearly bullish for shares. Volatility is the worth of admission.
In our weekly report/video, we highlighted our high three AI shares. Two of those broke out in late September and one stays inside a bullish continuation sample. The chart under exhibits Broadcom (AVGO) hitting a brand new excessive in June and buying and selling effectively above the rising 200-day SMA (crimson line). After hitting a brand new excessive, the inventory consolidated with a triangle into September. It is a consolidation inside an uptrend, which makes it a bullish continuation sample. AVGO broke out in late September and this breakout indicators a continuation of the long-term uptrend.
Take a look at TrendInvestorPro to see the opposite two AI shares, learn our weekly report and get entry to 2 invaluable studies with movies. One exhibits find out how to discover bullish setups with excessive reward potential and low threat. The opposite exhibits find out how to use breadth indicators to establish capitulation, thrust indicators, oversold circumstances and market regime. These studies alone are definitely worth the worth of admission.
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Select a Technique, Develop a Plan and Observe a Course of
Arthur Hill, CMT
Chief Technical Strategist, TrendInvestorPro.com
Creator, Outline the Development and Commerce the Development
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Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic strategy of figuring out development, discovering indicators throughout the development, and setting key worth ranges has made him an esteemed market technician. Arthur has written articles for quite a few monetary publications together with Barrons and Shares & Commodities Journal. Along with his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Enterprise Faculty at Metropolis College in London.
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