Data Storage & Fiber Optics still look incredibly strong

Near-term US Equity trends are bullish, and Wednesday’s recovery helped to carve out a short-term trading low despite a few days of consolidation since late October. As discussed, AMZN, GOOGL, TSLA, NVDA, PLTR, and AAPL all still look quite bullish and have not shown proper evidence that they have peaked out. While the bifurcation between large-cap Technology/Discretionary and the broader market has grown more severe, it's still likely that SPX could power higher into mid-November given the momentum of this rally alone. Overall, I expect that US stock indices have entered a much choppier trading environment between now and the end of November.  Ideally, this might play out as follows: A short-term rally back to new highs for SPX and QQQ, which is then followed by some backing and filling into late November.  This would align with my cycles and provide a very attractive entry point into late November or the first week of December, before a push back to new high territory.

Wednesday’s recovery was a much-needed step higher after numerous risk assets had begun to trade lower into early November. While the deterioration in cryptocurrencies proved to be far more damaging to the near-term trends than that of Equity indices, both look to be attractive at current levels for a push back to new highs.

Despite no encouraging news yet regarding a possible end of the government shutdown, Polymarket does show the highest likelihood based on the wagering amounts to center on November 8-12th of this month.

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