October Blues…Are They Over?
A painful month is about to close, and the tech sector is rejoicing. As for the rest of the equity indexes, the SPZ continues to trade near its recent high of 1428.50, with today’s trade making it up to 1427.70. The dealers have been steady buyers all session, but as we make headway into the mid 1420’s, the enthusiasm has waned somewhat.
As for the session and its remainder, I think we will settle around the 1435 level. In addition, I think the NDZ has the potential to trade towards the 3350 level. Also, one other area to watch is the RLZ — or the Russell 2000 futures, this contract has the potential to rally strongly over the next six weeks.
If the market were to reverse today’s gains, I think it would seriously hamper the recovery process, and most likely lead to lower lows than were seen in October. In other words, I cannot overstate the importance of the direction in the next 10 sessions. This market needs to make a stand and tell people that the bull is not dead.