• The S&P 500 has been bullish for several months now, and the month of October was very much the same.
• Breaking above the $6800 level, of course, is a very strong breakout, and as we have seen this, it suggests that perhaps acceleration in the uptrend is starting to become a factor.
   

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There are a multitude of reasons for this, not the least of which is the fact that the Federal Reserve is expected to cut interest rates at least twice before the end of the year. Because of this, traders on Wall Street are excited about this and look to jump into risk appetite. All things being equal, this is a market that is likely to continue to see a lot of volatility and possible dark moves between now and New Year’s Day. The month of November should be positive overall, as market participants continue to see plenty of reasons to jump into equities in the United States, and foreign purchases of the stocks in America continue to be a major driver as well.

Uptrend Continues

We have a nice uptrend line that has been a major support level for this market, and now we have a situation where the $6800 level should be support, followed by the $6500 level, although it seems very unlikely to reach that area. There is a psychologically important level in the form of $7000 that is being targeted as I write this analysis, and if we can break above there, then it leads to a more impulsive move.

On the daily chart, the market started to break out of a significant uptrend, signifying that the impulsivity of the rally should continue, and we may be entering a phase where gains occur rapidly. I would anticipate the occasional pullback during November, but unless the Federal Reserve changes its tune overall, stock markets are set to rally between now and the end of the year, and each drop should end up being thought of as an opportunity for the astute traders. The “magnificent 7” continue to be a major driver of US equities as well, so that dynamic should continue to be the way forward.

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