Stocks Are Ready To Rise On November 5, Be Careful

US Markets

  • S&P 500 Futures +6.75 points
  • US 10-Year 1.82%
  • Dollar Index 97.65
  • Oil $56.96
  • VIX 13.01

International Markets

  • Japan Nikkei +1.76%
  • KOSPI +0.58%
  • HSI +0.49%
  • Shanghai +0.54%
  • DAX +0.11%
  • UK +0.34%

MACRO

KOSPI

The South Korea Kospi is powering higher, and as I noted yesterday in my mid-day commentary and my premium video yesterday, one can not underestimate the signal that global stocks are sending. It is powerful when all the markets around the world are rising, and it means that the strength in the US market is not alone. It is a powerful statement.

Kospi,

 

Japan

The Nikkei, although a very long way from its all-time highs from 1989, the index is very quickly approaching its 2018 highs.

nikkei

DAX

The DAX is very close to returning its highs as well.

dax

Again, the strength in the US markets and the S&P 500 is not contained in only the US; it is a global event. It is a compelling statement.

S&P 500 (SPY)

However, with that said, the S&P 500 has led the charge higher, and the index is getting overbought here, and it needs to cool before making its next move higher. The RSI on the S&P 500 is now at 70.

S&P 500, spy

Meanwhile, the number of stocks trading above their 50-day moving average is now at the upper end of the range.

50 day moving average

As is the number of stocks above their 200 day moving average.

200-day moving average

It would suggest to me that the recent rally we have seen in the SP 500 is likely overbought and needs a minor pullback or cooling period. What we don’t want is a repeat of January 2018.

Industrial (XLI)

The industrial ETF is nearing a massive break out, so much for the group being in recession. Maybe that is about to end.

industrials

Material (XLB)

The XLB Material ETF could be heading back to $61.15.

xlb material

Russell 2000 (IWM)

This is where the Russell has failed the last several times. It may not need to consolidate some before breaking out again.

russell

STOCKS

NXP (NXPI)

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Disclosure: Michael Kramer And The Clients Of Mott Capital Own NFLX And NXPI

Disclaimer: This article is my opinion and expresses my views. Those views can change at a moment's notice ...

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