Breadth starts to tail off while many just concentrate on NVDA

Equity trends remain bullish, yet SPX is close to several projected targets near 5900 which should slow this rally down as it nears the end of October. This looks to be happening this week, though there is still no real evidence of a meaningful downturn in SPX just yet. Overall, the drying up in breadth and volume seems to be a warning sign to pay attention to following an extended run.  Technology has underperformed lately and it’s thought that the path for Equities between now and mid-to-late November could be lower given the combination of cyclical and sentiment-based issues.  While intermediate-term bullish thesis remains very much intact, arguably it’s doubtful that US Equities continue to push up into and post-election without any consolidation. Moreover, November's weakness should represent a short-term correction only, not the start of a larger decline.  Risk/reward seems poor in the short run, and SPX seems unlikely to exceed 6000 right away but could find resistance near 5900-5935.  Meanwhile, QQQ should find resistance at 503-505.

SPX finished less than eight points away from the daily close from 10/14/24, the close from last Monday, and this stalling out has kept a lid on both meaningful rallies and declines.  While this isn’t necessarily bearish, per se, it is starting to have a detrimental effect on market breadth which has begun to turn down in the near term.

Pullbacks in sectors like Industrials or Financials in recent days to multi-day lows really aren’t being discussed, but rather many investors, focus remains on tech bellwethers like $NVDA and/or $AAPL.

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