E TalkMarkets Tuesday Talk: Dips, Swings And The Election

With the markets swinging up yesterday and Friday, it seems that last week's ride lower in the markets may have been a dip rather than a downturn. Yesterday, the U.S. markets closed as follows: Dow 27,584, up 410 pts, S&P 500 3,352, up 53 pts and Nasdaq 11,118 up 204 pts. Will these levels hold? Currently market futures are flat to down: Dow -0.17%, S&P 500 -0.19% and Nasdaq 100 -.29%. Asian markets closed the day slightly up, save for the Hang Sang which closed down -0.85%. Currently European markets are flat to down with the FTSE trading around -0.75% lower and the Dax -0.65%. Continuing concerns over COVID-19 and anxiety surrounding tonight's first US Presidential Election debate no doubt contributors to today's jitters.

TalkMarkets contributor Declan Fallon in Bounce Stalls Despite Morning Gaps looks at recent market activity through a technical lens and is not relaxed. Below are his opening and closing remarks, along with the S&P 500 (SPX) chart.

"Friday's rally offered a promising open with a gap higher, but there was no follow through on these gains. In the case of the Nasdaq, there was a close above the 50-day which also picked up the 20-day MA but if the gap is to register as a true 'breakout gap' it cannot close. There was a 'buy' trigger in On-Balance-Volume to go with today's gain. The index is still outperforming Small Caps as it looks to build on its leadership role as the primary home for funds. 

"Monday's gain in the indices formulated the basis for a swing low by providing an additional support level on today's gap; there is now the gap and Thursday's low to lean on. I'm still not hugely confident of this acting as a major swing low with the election so close, but rallies climb walls of worry - and the election is a big worry. "

So what sectors are looking good as the end of Q3 approaches? Rod Raynovitch takes a look at Bio-Tech, Pharma and Healthcare companies in Biotech Stock Playbook In A Choppy Momentum Market and gives us a heads-up on some of his current picks. His current outlook on these sectors is summed up in 3 lines:

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Dick Kaplan 1 year ago Member's comment

Thanks for bringing @[Simon Lack](user:17439)'s and @[Rod Raynovich](user:5695)'s articles to my attention. I enjoyed them.

David Marshall 1 year ago Contributor's comment

👍🏽

William K. 1 year ago Member's comment

Interesting. But I question which is cause and which is effect. Does the economy and the market effect the people's choices or is it that the people's choices effect the market?