Stocks Rally but Can they Sustain??

18 de out. de 2021

Stocks have rallied to the mid 4400's, despite persistent inflation fears and a more hawkish stance from the Fed. We have topped off at around 4462. We came just a few ticks before the next level at 4487, before retracing. Currently, we are holding just above 4440. Two green triangles on the KRI suggest support here. The risk sentiment in the markets is mixed, and neutral at best, so it is likely that stocks will range today, assuming we do not see something change toward the open. The S&P is looking a bit top heavy, so there is more downside risk. If we retrace further, there is a cluster of levels below to provide support but 4408 seems likely to hold as a min lower bound for now.