The latest Daily U.S. Market Forecast Report, issue no. 3986 as of Tuesday, October 3rd, 2020, is now available at www.technicalindicatorindex.com To access this report, subscribers can simply log in and click on the U.S. Daily button.
For those of you with busy schedules, here is an executive summary (for a more intense detailed report, with charts, more statistics, trend analysis, and extraordinary developments, click on the U.S. Weekend and Daily Market Forecast Reports at the website):
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Today's Market Comments:
Stocks rose sharply Tuesday, November 3rd, on the day of the U.S. Presidential election. As this newsletter is going out at 2:15 am EST, November 4th, there are five battleground states that are in question, and may not be tabulated until Wednesday or later. There are several paths for either President Trump or Vice President Biden to win the Presidential election. There is a chance it will come down to litigation in Pennsylvania and perhaps other states, with ultimately the U.S. Supreme Court deciding who the next President will be. Incredible.
At this point, it looks like Congress will be split, the House retaining control by the Democrats, the Senate retaining control by the Republicans, assuring a less likely massive overhaul of the Constitution and Governing policies of the U.S. The markets are looking for Certainty, and a split Congress will help provide some certainty. Over the short-run, litigation and a Presidential election dispute will not. However, in the past, several Presidential election results were not known until the next day, or in the case of 2000, several weeks later. You can't make this stuff up.
Tuesday's stock market rally came on moderate volume, and strong positive breadth.
The rally Tuesday generated several new signals for our indicators. The Blue Chip key trend-finder indicators are now on a Buy signal as the 30 Day Stochastic joined the Purchasing Power Indicator and the 14 Day Stochastic on Buys.
The NASDAQ key trend-finder indicators all moved to new Buy signals Tuesday. The small cap Russell 2000 also moved to a new Buy signal.
Our HUI key trend-finder indicators moved to a new Buy signal.
The rise the past few days looks to be the start of wave (C ) up to complete Cycle degree wave B-up. If so, more upside is likely over the coming weeks.
Gold, Silver, and Mining stocks rose again Tuesday, November 3rd. Our HUI / Gold key trend-finder indicator moved to a new Buy signal.
Gold is inside an A-down, B-up, C-down corrective decline from August 2020. Wave C-down is a five subwave move, and so far it looks like the first two subwaves have completed, with 3-down underway now. It needs subwaves 3, 4 and 5 down of C-down to complete (2) down. To follow will be a strong wave (3) up.
Our Blue Chip key trend-finder indicators generated a Buy signal November 3rd, 2020 and remain there Tuesday, November 3rd, 2020. The Purchasing Power Indicator component triggered a Buy signal Monday, November 2nd. The 14-day Stochastic Indicator generated a Buy on November 2nd, 2020, and the 30 Day Stochastic Indicator generated a Buy on November 3rd, 2020. When these three indicators agree, it is a short-term (1 week to 3 months' time horizon) key trend-finder directional signal. When these three indicators are in conflict with one another, it is a Neutral (Sideways) key trend-finder indicator signal.
Our intermediate term Secondary Trend Indicator generated a Buy signal Wednesday, May 20th, and remains there Tuesday, November 3rd, rising 5 points (out of a possible 9 points), to positive + 9. It will need to fall below negative - 5 for a new Sell signal.
Demand Power Rose 14 to 429 Tuesday while Supply Pressure Fell 10 to 426, telling us Tuesday's Blue Chip rise was powerful, aided by short covering. This DP/SP Indicator moved to an Exit Short Signal November 3rd, and remains there Tuesday, November 3rd, 2020.
The HUI generated a key trend-finder indicator Buy signal November 3rd, as the HUI 30 Day Stochastic triggered a Buy signal November 3rd, 2020, and our HUI Purchasing Power Indicator generated a Buy on October 30th, 2020. When these two indicators agree, it is a directional signal, and when at odds with one another, it is a combination neutral signal. The HUI Demand Power / Supply Pressure Indicator moved to an Exit Short signal November 3rd. On Tuesday, November 3rd, Demand Power rose 4 to 389 while Supply Pressure Fell 4 to 385, telling us Tuesday's HUI rise was moderate.
DJIA/SPY PPI Rose 13 to negative -88.35, on a Buy
DJIA 30 Day Stochastic Fast 33.33 Slow 14.00 On a Buy
DJIA 14 Day Stochastic Fast 36.67 Slow 11.11 On a Buy
DJIA % Above 30 Day Average 33.33
DJIA % Above 10 Day Average 60.00
DJIA % Above 5 Day Average 96.67
Secondary Trend Indicator Up 5 to Positive + 9, On a Buy
Demand Power Up 14 to 429, Supply Pressure Fell 10 to 426 Neutral
McClellan Oscillator Rose to Positive + 24.96
McClellan Osc Summation Index + 1174.70
Plunge Protection Team Indicator + 10.74, an "OFF" signal
DJIA 10 Day Advance/Decline Indicator - 132.3 on a Sell
NYSE New Highs 62 New Lows 13
Today's Technology NDX Market Comments:
The NDX Short-term key Trend-finder Indicators generated a Buy signal Tuesday, November 3rd, 2020, and remain there November 3rd, 2020. The NDX Purchasing Power Indicator generated a Buy on November 3rd, 2020, the NDX 14 Day Stochastic triggered a Buy on November 3rd, and the 30 Day Stochastic triggered a Buy signal on November 3rd, 2020. When all three component indicators are in agreement on signals, it is a consensus directional signal. When they differ, it is a sideways signal.
The NDX Demand Power / Supply Pressure Indicator moved to an Enter Short positions signal Monday, October 26th and remains there November 3rd. On Tuesday, November 3rd, Demand Power Rose 9 to 449, while Supply Pressure Fell 8 to 473, telling us Tuesday's rise was strong.
The NDX 10 Day Average Advance/Decline Line Indicator triggered a Sell signal October 23rd, 2020, and needs to rise above + 5.0 for a new Buy. It rose to negative -9.2 on Tuesday, November 3rd.
NDX PPI Up 13 to 174.87, On a Buy
NDX 30 Day Stochastic Fast 45.12 Slow 28.78 On a Buy
NDX 14 Day Stochastic Fast 36.90 Slow 17.14 On a Buy
NDX 10 Day Advance/Decline Line Indicator 7.2 On a Sell
NDX Demand Power Rose 9 to 449, Supply Pressure Fell 8 to 473 Sell
RUT PPI Up 11 to + 89.71, on a Buy
RUT 10 Day Advance/Decline Line Indicator - 2.10, On a Sell
Today's Mining Stocks and Precious Metals Market Comments:
Our HUI key trend-finder indicators moved to a Neutral signal October 30th, 2020.
HUI PPI Up 3 to 269.63 on a Buy
HUI 30 Day Stochastic Fast 55.00, Slow 29.44 on a Buy
HUI Demand Power Up 3 to 389; Supply Pressure Fell 4 to 385 Neutral
McHugh's Market Forecasting and Trading Report and this Executive Summary |
