October 19, 2020
The S&P 500 (SPX) remains above its previous technical resistance zone/now support at ~3420-3450. A break below ~3420 would change our near-term expectation for a successful test of the ~3581 high. We’re also closely following the S&P 500 Value Index (SVX) as it hovers just below technical resistance at ~1180-1200. A breakout would signal a multi-week preference for cyclical/value sectors and possibly the start of a meaningful rotation. Flash PMI data this Friday could play a role, particularly the Eurozone number. Consensus is looking for 53.1, and a number above ~54 could do the trick.