Stock Market Rally Faces Key Test at S&P 500 Resistance
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The stock market is still in a downtrend until the S&P 500 closes decisively above 4400. This is a key resistance level.
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Some internal indicators have turned bullish recently like the McMillan Volatility Bands and VIX indicators. But others like market breadth remain negative.
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The October seasonal pattern has been very bullish, fueling the recent rally. But we need to see if this rally has staying power.
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We are maintaining core bearish positions using SPY puts. But also trading other bullish signals around that core.
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Specific trade recommendations are given for SPY, XLP, and rolling various option positions based on indicators.