No Telling If It Will Stick

spx_weekly

Not much to make of the market’s rally as the major indexes bounce off their 50-day averages.

Heavy selling set a new tone a couple weeks ago.

We’re more inclined to think institutions are more defensive than aggressive these days.

But we don’t want to ignore the fact that it’s still a dominant uptrend.

We could very easily see new highs in here. But there’s no telling if they’d stick.

Volume Nearly Always Precludes Price-Action

Kicking off October...
Kicking off October...

October has kicked off with a bang.

heavy-volume selling has hit just about all the major indexed and sectors, with the exception of the S&P 500…

We thought we’d see this in September, but have been seeing the warning signs via heavy selling for some time.

Volume nearly always precludes price-action.

What we’re looking for now is pullbacks to the 50-day averages.

For the S&P, that’s the 1020 zone…