Mish’s Daily: Market Has Stress Fractures But No Clear Breaks

Mish’s Daily: Market Has Stress Fractures But No Clear Breaks
Written by Michele ‘Mish’ Schneider

Considering EVERYTHING:
- 1. Yields and mortgage rates
- 2. War
- 3. Inflation and rising commodity prices
- 4. Bank stocks falling
- 5. Risk Gauges 2 out of 6 now risk-off
To name a few, why then is the S&P 500 so strong?
Here are a few reasons:
- 1. Fed members suggest rate hike pauses.
- 2. Hope that the war lateralizes rather than escalates.
- 3. Economy stats mixed with retail sales and labor strong.
- 4. Sidelined cash in money markets could move into equities.
- 5. Seasonally, Q4 and pre-election years are historically strong.
Besides the SPY chart, we are also watching the price in small caps.
I feel like I have written the same themes repeatedly. It’s almost like a mantra-
Watch price and timeframe in the economic modern family
Watch commodities
Watch risk gauges
And here we are still stuck in time as time seemingly stands still amidst the increasingly faster speed and plethora of news.
The SPY monthly chart is not bearish.
It could turn out that way, but presently, SPY sits atop the blue line or 23 month moving average.
We have 2 weeks left in October, so we are watching 418 level carefully.
We are also watching 450 as resistance carefully. After all, a trading range is not only possible, but also plausible.

Small caps look more vulnerable.
Hence, we look to them to tell us what’s next.
Negatives:
A declining slope on the 23-month MA
A narrowing between the 23 and 80-month MAs
An unimpressive bounce off the 80-month MA (green line).
Positives
IWM is still above the 80-month MA
His wife, Granny Retail XRT is potentially making triple bottoms off of the October 2022 lows. Tune out the noise and follow the charts.
If you find it difficult to execute the MarketGauge strategies or would like to explore how we can do it for you, please email Ben Scheibe at Benny@MGAMLLC.com, our Head of Institutional Sales. Cell 612-518-2482
For more detailed trading information about our blended models, tools, and trader education courses, contact Rob Quinn, our Chief Strategy Consultant, to learn more.


You don’t want to miss Mish’s 2023 Market Outlook E-available now

NOT TOO LATE Click here if you’d like a complimentary copy of Mish’s 2023 Market Outlook E-Book in your inbox.

Get your copy of “Plant Your Money Tree: A Guide to Growing Your Wealth”
Grow Your Wealth Today and Plant Your Money Tree!

“I grew my money tree and so can you!”- Mish Schneider
Mish in the Media
Business First AM Garmin 10-18-23
CMC Markets Daytrading Earnings and Commodities 10-18-23
Business First AM 10-17-23
FACE ForexAnalytix Pre market 10-12-23
CMC Markets Daytrading Commodities 10-11-23
Business First AM Market Reaction to War 10-10-23
Financial Sense Newshour Jim Puplava Podcast 10-06-23
Final Bar Sub Host for Dave Keller 10-09-23
Making Money with Charles Payne Fox 10-05-23
Yahoo Finance 10-05-23
Real Vision 10-04-23
Kitco on gold 10-04-23
BNN Bloomberg Opening Bell 10-04-23
Schwab with Nicole Petalides 10-02-23
Coming Up:
October 19 Live Coaching
October 20 Your Daily Five
October 20 Crypto Town Hall X Spaces
October 23 BNN Bloomberg
October 27 Live in Studio with Charles Payne Fox
October 27 Live in Studio Yahoo Finance
October 27 Recorded in Studio with IBD
October 29-31 The Money Show
Weekly: Business First AM, CMC Markets
ETF Summary
S&P 500 (SPY) 440 resistance 429 support
Russell 2000 (IWM) 177 resistance 170 KEY support
Dow (DIA) 344 resistance 332 support
Nasdaq (QQQ) 368 resistance 363 support
Regional banks (KRE) 39.80 -42.00 range
Semiconductors (SMH) 150 resistance 140 support
Transportation (IYT) 237 resistance 225 support
Biotechnology (IBB) 120-125 range
Retail (XRT) 57 key support if can climb over 62, better
20231019
