S&P 500 to Test Highs
October 12, 2020
Previews of Q3 earnings season focus on elevated expectations based on increased estimates during the quarter. Tomorrow morning kicks off the start of earnings season with results from BLK, C, DAL, FAST, FRC, JNJ and JPM. AAPL will also host its iPhone product launch event tomorrow at 10am PT, while AMZN holds its Prime Day tomorrow and Wednesday. WMT and TGT also holding sales this week.
The S&P 500 has cleared its last remaining technical resistance level (~3440) in its pursuit of testing the September 2 high of ~3581. The run-up to the September 2 high lacked any of the usual signs of a market top. Broad sector participation, consistent price trend momentum, cross-market confirmation, light equity positioning and elevated bearish sentiment had us looking for an eventual test of ~3581 before year-end. That test is occurring now and we’ll keep you updated on signals over the next several weeks.
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