Friday, October 2, 2015

Market outlook: confirmed uptrend (2 October 2015)

  • Key reversal day
  • Follow-through on S&P500
Stocks staged a positive reversal Friday, turning big losses at the open into solid gains by the close. The Nasdaq scored a 1.7% advance after being down 1.6%. The S&P rose 1.4%.  Volume rose on both major exchanges.


  • The gains in rising volume pointed to institutional buying.
  • The S&P 500's thrust came on Day 4 of an attempted rally, which along with the volume and price gain qualify as a follow-through day.
  • A follow-through day confirms that an uptrend is underway.
On Friday, beaten-down groups provided most of the day's leadership. Gold miners, and oil and steel stocks were up.  On the downside, banks suffered the most damage.

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