Market is Caught — Which is Extraordinarily Bullish | High Advisors Nook

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Now that the Fed has thrown every part on the market together with the kitchen sink, specifically by elevating the Fed Funds charge by one other .75 and signalling they may proceed to lift charges as a lot as crucial down the street, merchants are questioning what may come subsequent. All you need to do is check out the chart beneath, which reveals the S&P is on the identical degree it was again in Could, to see that the worst of the promoting is probably going over and that the market might be preparing for a robust rally into year-end.

Simply give it some thought. All of the Fed has completed is proceed to lift charges, and it has vowed to proceed elevating charges so long as crucial. In different phrases, a really hawkish stance. But the S&P is effectively above the October 13 low of 3491, possible as a result of those that have thought-about stepping to the sidelines have already got. Might we go decrease right here? After all. However it’s going to need to occur throughout probably the most bullish time of the yr and after many corporations have already come to the earnings confessional — i.e. merchants have already absorbed an terrible lot of dangerous information, together with the more and more hawkish Fed.

So the place can we go from right here? If we do get the rally I consider will come, then, as you possibly can see above, the primary key goal could be the 200-day shifting common on the S&P, slightly below 4100. That may symbolize a rise of virtually 9% based mostly on Friday’s shut. Ought to the bulls handle to clear that degree, then 4325, the August 16 excessive, could be subsequent. For those who are usually extra conservative, you may wish to wait to see if we get a pullback to proper round 3650, which ought to present worth assist. After that’s the biggie, 3491, and if that have been to go, all bets could be off.

Within the meantime, our Chief Market Strategist Tom Bowley goes to be conducting a well timed, extremely instructional webinar this Saturday, November 5 at 10:00am ET, titled “Understanding Market Manipulation for Extra Worthwhile Trades.” It is a FREE occasion that is filling up quick and you may study extra and register by clicking right here.

At your service,

John Hopkins

EarningsBeats.com

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