Technical Analysis: Seasonality Turns Positive
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The good news is that Monday marks the start of the three most positive months of the year for the stock market. The caveat is that the election remains a wild card, and apart from who wins or loses, another uncertain outcome would likely be viewed as a negative. The Nasdaq (first chart below) has support at 1956, 1950 and 1940, and resistance is 1990-2000 (1984 was today's high). The S&P 500 (second chart) is pushing 1130-1132 resistance, with 1140-1142 a big level above that. Support is 1124 and 1120. The Dow (third chart) has resistance at 10,050, 10,109 and 10,160, and support is 9950-10,000. Finally, the banks (fourth chart) put in a bullish "three white soldiers" pattern this week, a plus for the bullish case.