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The Bounce Continues
Monday Market Update October 9, 2023
Stocks continue to head higher today despite horrific news out of Israel over the weekend.
After gapping down and trading lower in the early hours stocks slowly began to rise. Then an afternoon rally kicked things into a higher gear moving SPY and QQQ beyond last week’s highs.
All S&P Sectors were positive with Energy XLE leading the way, up more than 3%.
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The change of character for the market is notable. Stocks are moving higher on bad news, an occurrence noted here before. Shrugging It Off
from Shrugging It Off - March 31, 2023
There is more news later this week as well.
CPI, PPI, FOMC meeting minutes, and several bank earnings reports are coming.
We’ll see if it is good or bad, and how the markets react.
SPY has a very strong two-day move now back into the support/resistance zone from June and nearing its 21-day moving average. The August pivot low is potential resistance as well. Expect some back-and-forth near this level.
QQQ moves on past the gap fill and into the 50-day MA.
IWM is back over the 8-day MA to regain some short-term momentum.
DIA is moving well, like the others. But, it is still below the 200-day MA. Recapturing that level, and then staying above it will be a very important move.
TLT moved higher even though the bond market was closed today. See if it gets some follow-through tomorrow.
DXY continues to sell off providing relief for stocks to move higher.
The Closing Bell
The charts are improving. Will inflation data later this week derail the move in stocks? Or do cooling prices allow the Federal Reserve to consider a more dovish stance?
Continue to follow the process, looking forward to each next step, whether higher or lower.
Back with more on Thursday.
***This is NOT financial advice. NOT a recommendation to buy, sell, or trade any security. The content presented here is intended for educational purposes only.
Andrew Moss is an associated member of T3 Trading Group, LLC (“T3TG”) a SEC registered broker/dealer and member of FINRA/SIPC. All trades placed by Mr. Moss are done through T3TG.
Statements in this article represent the opinions of that person only and do not necessarily reflect the opinions of T3TG or any other person associated with T3TG.
It is possible that Mr. Moss may hold an investment position (or may be contemplating holding an investment position) that is inconsistent with the information provided or the opinion being expressed. This may reflect the financial or other circumstances of the individual or it may reflect some other consideration. Readers of this article should take this into account when evaluating the information provided or the opinions being expressed.
All investments are subject to the risk of loss, which you should consider in making any investment decisions. Readers of this article should consult with their financial advisors, attorneys, accountants, or other qualified investors prior to making any investment decision.
October 9, 2023, 4:00 PM
Long: AMD, AMZN, MSFT, NVDA, QQQ, SOXL
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