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Friday, September 30, 2016 6:57:27 AM
Almanac Trader: Debates & Banks Spur Octoberphobia, Setting Up “Best Six Months” Seasonal Buy Signal
* September 30, 2016
From our vantage point the market is threatening to return to the downside after two days of bliss following Monday’s Presidential debate. The Down Friday/Down Monday warning this week is looming large again. Spooked by a host of market events, the often treacherous end of Q3 portfolio adjusting by fund managers and perhaps some Octoberphobia, stocks retreated today.
News from Apple, Deutsche Bank, Wells Fargo and OPEC put the market in sell today. U.S. equity indices did rally off the mid-afternoon lows (which is historically the weakest part of the day), but the major indices finished the day all down around 1%. How we close out tomorrow’s action on the last trading day of Q3 should be instructive.
The 50-day moving average has been resistance for DJIA and S&P and serving as support for NASDAQ and Russell 2000. If S&P 500 cannot reclaim its 50 DMA and instead breaks down through its monthly pivot point around 2150, the early September lows near 2120 come into play. Then there is some support near 2100 around June’s highs. If that level does not hold then further support can be found just below the 200-day moving average near 2050.
However, this will be a solid set up for a quintessential October Buy. October is the best month to buys stocks, especially small caps and tech stocks. It’s even better after a pullback/correction. This current downside action is close to putting or MACD indicators into sell mode and setting up a solid “Best Six Months” Seasonal MACD Buy signal.
http://jeffhirsch.tumblr.com/post/151116178618/debates-banks-spur-octoberphobia-setting-up
• DiscoverGold
Click on "In reply to", for Authors past commentaries
* September 30, 2016
From our vantage point the market is threatening to return to the downside after two days of bliss following Monday’s Presidential debate. The Down Friday/Down Monday warning this week is looming large again. Spooked by a host of market events, the often treacherous end of Q3 portfolio adjusting by fund managers and perhaps some Octoberphobia, stocks retreated today.
News from Apple, Deutsche Bank, Wells Fargo and OPEC put the market in sell today. U.S. equity indices did rally off the mid-afternoon lows (which is historically the weakest part of the day), but the major indices finished the day all down around 1%. How we close out tomorrow’s action on the last trading day of Q3 should be instructive.
The 50-day moving average has been resistance for DJIA and S&P and serving as support for NASDAQ and Russell 2000. If S&P 500 cannot reclaim its 50 DMA and instead breaks down through its monthly pivot point around 2150, the early September lows near 2120 come into play. Then there is some support near 2100 around June’s highs. If that level does not hold then further support can be found just below the 200-day moving average near 2050.
However, this will be a solid set up for a quintessential October Buy. October is the best month to buys stocks, especially small caps and tech stocks. It’s even better after a pullback/correction. This current downside action is close to putting or MACD indicators into sell mode and setting up a solid “Best Six Months” Seasonal MACD Buy signal.
http://jeffhirsch.tumblr.com/post/151116178618/debates-banks-spur-octoberphobia-setting-up
• DiscoverGold
Click on "In reply to", for Authors past commentaries
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
• DiscoverGold
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