I’ve seen a lot of markets , but this is one for the books.
SPX closed the month up 2.3% after being down 7%, COMPQ up 3.04% after being down 6.18%, RUT up 6.5% after being down 5.5%. Amazing.
For the day the SPX/DOW were +1.15%, and the NDX/NAZ were +1.40%. Bonds lost 8 ticks, Crude dropped 40 cents, Gold fell $25, and the USD was higher.
I still believe that hedge funds will be playing catch until year end. Most of them didn’t get long at the bottom on October 15. As a matter of fact many waited a week because they thought the bounce was just a bounce and it would rollover again. That didn’t happen.
So now they chase, right or wrong, they chase performance.
SPX support remains at 1973 and 1956, with resistance at 2019 and 2070.
We are a bit stretched here and the elections are Tuesday, so I wouldn’t be surprised at all if the market takes a rest and exhibits some profit taking. Hopefully a small pullback will give us some good entries.
Have a great weekend.
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