Gold Miners likely play catchup

Short-term trends turned back to bullish following Wednesday’s close above 5525, and Technology has snapped back with a vengeance following its recent two-month pullback to support, and we’ve seen some definite evidence of QQQ starting to outperform SPY as Growth makes a comeback.   Triangle pattern resistance for both SPX and QQQ should be tested into next week ahead of our long-awaited FOMC meeting, and any break above this resistance could allow for even further acceleration into October before any drawdown.  However, given the back month negative seasonality trends, initially it’s expected that the area near 5650 should prove to be strong resistance for SPX, and will be a Line in the sand for Bulls. 

The triangle patterns for both SPX and QQQ look important to concentrate on into next week’s FOMC meeting, as this week’s Tech snapback has helped SPX to yet again push up to within 1.5% of all-time highs from July.

Thursday’s PPI and CPI data came in strong enough to potentially cement 25 basis points as the level the market expects into next week, and odds of a 50-basis point cut have been declining for roughly two weeks as economic data has steadied.

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