AAPL, GOOGL, NFLX breakouts help to aid "Mag 7" in the short run

Near-term trends are bullish for SPX and I anticipate a sharp rally to finish the month of October after an interesting period of sector rotation in recent weeks.   Monday’s success in climbing over last week’s highs for SPX and QQQ should enable these to both push back to new all-time high territory.   Despite some minor warnings regarding breadth, high yield spread widening, and/or lack of broad-based participation, it looks like breakouts in AAPL GOOGL and NFLX should help Technology show sufficient leadership to carry US stock indices over the next few weeks.   At present the Treasury rally along with Precious Metals rally both seem to be continuing this week but should be vulnerable to trend change upon October coming to a close.

Overall, the minor triangle pattern of the last few weeks was successfully resolved by an upside breakout in both $SPX and $QQQ today.

This is bullish for a push back to highs, despite no evidence of the Govt. shutdown abating, nor any further confidence about the FOMC’s plans at the end of October.

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