Want to know how is the stock market doing? In this article, we will analyze the markets and look at what we can expect in the stock market for Oct 9 - Oct 13 2017. In our recent weekly monthly outlook titled What To Expect In The US Stock Market For October 2017 - More Bulls Ahead, we were correct in anticipating more record highs for the Dow Jones, S&P 500 and Nasdaq.
The stock market has run up quite a bit for now and it is currently quite overbought. So it will not be surprising that there is a short correction this week. But if the indexes can manage to trade sideways and rest more, there is a possibility of climbing up a bit higher. I do a day to day analysis of the stock market so if you want to be up to date, do visit the Stock Market Analysis page everyday.
Let's take a look at the charts below and see what they are telling us.
The daily charts of the Dow Jones, Nasdaq and S&P 500 shows us that the uptrend is still intact but they are all quite overbought at the moment with 1st targets almost met or met. Therefore, it is good to be cautiously bullish. Overbought does not mean the main indexes will collapse. They just mean that they are overbought and we should be cautious. That's all. Stocks and indices are known to go up and up and up even in overbought conditions.
One of the biggest gainers is the small caps index. You can see how the index rallied superbly from August with almost non stop bull run.
Why do I show this chart here?
Because a rising small cap index shows that the stock market has broad participation and not being prop up by a handful of big cap stocks.
This bull market is strong and healthy when many many stocks across different indexes are participating in the rally.
Next we look at the 60 min charts of the SPY, DIA and QQQ. All 3 of them are in a nice strong bullish 60 min uptrend. So far there is no sign of weaknesses yet and we should continue to remain bullish in the indexes as long as the 60 min charts are in a nice uptrend.
QQQ has broken out of a resistance area and the area will now act as a support area. Therefore, if there is any correction, we can expect QQQ to find some support there.
The chart of SMH and XLF supports a strong bull market. With semis and financials doing good, this represents strength in the overall stock market.
While the stock market has performed well, oil and gold has not been shining very well lately. Both of them are trying to find support and it might be a good idea to look at the 60 min charts for any sign of reversal.
Ever since the climactic sell off with heavy volume, Bitcoin has traded back up. Since it has broken out of a recent resistance, there is a possibility that Bitcoin might challenge the old highs.
Both Nikkei and Hang Seng has been doing well and both of them still point to further gains. Strength in these two Asian markets give weight to the fact that the global financial markets are doing well.
Charts with the Freestockcharts.com label are courtesy of Freestockcharts.com
Charts with the investing.com logo are courtesy of Investing.com powered by Trading View
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