On a short-term basis, the S&P 500 broke a trading channel and with short-term momentum weakening there is some near-term risk to correct towards the 50-day MA just under 1,110.
6 Month SPX chart
Source: Bloomberg
Technimental’s Kevin Lane notes that “Given the strong tape action along the away, this corrective activity is likely to be modest; However, there has been minor trend lines on the S&P 500 violated and some internals that are weakening.”
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Quote of the Day
“Given the sluggish job growth and the virtual absence of inflation, the Fed has no reason to tighten monetary policy for quite awhile, regardless of the electoral calendar.”
– Alice M. Rivlin, former vice chairwoman of the Federal Reserve
