$SPDR S&P 500 ETF Trust(SPY)$ As October wraps up, attention shifts to November and the year-end stretch. There's a chart showing the next three months have historically been far and away the strongest stretch for the stock market. With stocks having sold off into what's been a strong earnings season, this setup looks like it could line up nicely again. Chart via Stock Traders Almanac.
The letter from yesterday noted that as long as key supports held on any FOMC-driven spikes lower, the plan was to keep looking for areas to go long, and a push through the 7736 SPX level was flagged as bullish with a target at 7753. That setup played out. The 7702 entry never even needed to be tested. The session opened with a drop to a low of 7718.37, which pointed to strong buying interest. From there, price pushed through the 7736 level, consolidated, and then ran to a high of 7758.43, just above the 7753 target. It closed with a 0.3% move higher amid FOMC volatility, and after hours it is sitting right on the key 7724 support level. $Eversource(ES)$ _F Whether $SPDR S&P 500 ETF Trust(SPY)$
$SPDR S&P 500 ETF Trust(SPY)$ Nice bounce in Technology XLK as near-term downside momentum starts to fade. I'm watching the October 22nd downside gap: failure from here keeps the lower-lows and lower-highs in place, while a breakout would start to suggest the bulls are back in charge. The same applies to the short-term chart of the S&P 500 SPY.