US Stock October Monthly iMTF™ Market Update. The US Stock markets are continuing to go higher and higher month to month. Normally, after Labor Day, the markets go higher and this year it did the same registering new high’s in some sectors.
Since the markets are going higher month to month, we are going to focus on the daily time frame to find the major support/resistances.
All the charts are provided by eSignal.
We are first going to look at the daily chart for the $NQ Nasdaq futures. The reason is that $Nasdaq has been leading the markets higher since beginning of the year. As a result, we will see if this is still the case.
In the month of August, the Nasdaq made a new all time high. For September, the market just consolidated at the high’s. The small consolidation pattern is between 5851.14 and 6011.33
Here is the daily chart:
Below is the daily chart for the $Dow futures $YM. Last month, it was in a nice bullish trend making new high. In the last month, it has “settled” down with price consolidating. Until the NASDAQ, it has not broken the high this week. It is slowly approaching the high.
Therefore, the Dow was lagging behind the Nasdaq but not anymore. This month was another proof that it has taken a leadership role compared to the Nasdaq by making new high’s while the Nasdaq consolidated.
The Dow hit a major resistance at 22374. This is the 50% extension. The only way you can forecast future resistances with an instrument making all time high’s is to use Fibonacci extensions since there are no past price history. The 61.8% extension resistance is at 22441.
The minor support is 22254 with major support of 22025.
Below is the $ES E-Mini Sp500 futures. It also made a new high in the month of the September just like the Dow. The next major resistance is 2525.70 which is the 50% Fib. extension. This is a little weaker than the Dow but it seems like it is playing “catch up” now.
Below is the $TF Russell Futures chart. The $Russell futures has been weaker of all markets. However, in the month of September it started to make new high’s. This is a good sign for the overall market because if the “laggard” starts to move the entire market has the same sentiment from small caps to large caps.
The next major resistance is 1503.55 which is the 50% Fib extension. The major support is 1449.66.
In conclusion, the Dow is leading all markets with the Dow, SP500, and the Russell making new high’s. Remember, we are analyzing the daily time frame since all the markets are all time high’s. By doing this, it is a short term view. With the short term view, the markets can rotate who is stronger each month.
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