In case you missed it, this week the markets swooned lower on a lower than expected ISM # only to bounce back later in the week as market participants decided that bad news was good news as weaker economic #’s may force to Fed to cut rates which would ultimately be good for stocks.
In the end, it appears the current market narrative is a win-win for stocks.
Bad news then the Fed will cut rates and that will be good for stocks.
Good news and well that’s also good for stocks. 🙂
So one has to ask what would change this current narrative?
Two obvious scenarios come to mind –
1) If the Fed somehow ran out of bullets or
2) If the Fed was somehow prevented from decisive taking action.
With the 1st trading week of the Q4 in the books, from a price-action perspective, the markets traded most of the week below the opening levels of all the major timeframes and finally found some support off of the 200 day EMA.
Buyers stepped and took control in the latter half of the week however the next big area to watch is to see how the indices can navigate the monthly and quarterly opening levels.
Bitcoin and ETHUSD are also now on the sell watchlist as they both have flagged setups that may see them both breaking below last month’s inside quarter.
Watch this week’s Weekly Outlook video to see the setups and levels we’ll be watching.
In this week’s video, we look at the technical outlook for the VXX SPY QQQ IWM DIA EEM TSX TLT GLD SLV BTCUSD ETHUSD TOTAL EEM MSFT ETSY SQ NBEV MDT NVTA TSLA and more for the week of Weekly Market Outlook For October 7-11, 2019.
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