Market On Open - Tuesday 7 November

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"Should" Be Selling Off, Aren't.

Since we have now been following the equity indices day in, day out here at Cestrian Inner Circle since the start of the year, we can say that the Nasdaq, Dow Jones and S&P all move to a similar beat, and if they aren't always exactly in time, there is at least some rhythm holding it all together. In part this is due to the overlaps in holdings - AAPL is a big part of the S&P, the Nasdaq and the Dow, for instance - and in part it's the flight-to-safety character with which the top component stocks of these indices have become labeled. The Russell 2000 however, moves to its very own beat and it very often involves headbanging. Your own head on the table, that is.

The big three indices are holding up surprisingly well this week after a major move to the upside last week. All three of them put in smaller-degree Wave 1 up moves, which means at some point we can expect quite a big retracement of those moves - usually a 61.8% or a 78.6% Wave 2 drop. That keeps threatening to happen - yesterday and in the Globex and early Chicago futures sessions today and also in the early New York regular trading hours session. So far no dice.

Single-stock earnings from DataDog ($DDOG) today were very strong, and this has lifted a number of other enterprise software stocks. There is a little spillover benefit of this into the Nasdaq we suspect. DDOG isn't of any systemic importance, but enterprise software spending is, and it appears to be holding up just fine, recessionista rallying cries notwithstanding.

Righto. Onto today's analysis.

Let's Get To It

Paying members, scroll right down for our latest take on markets. As always we look at the 10-year yield, the S&P500, Nasdaq-100, Dow Jones and the Russell 2000; we consider long-term and short-term outlooks, and we lay out staff personal account trading plans in each of the indices. We add Bitcoin and Ether futures pricing for good measure.

Note - to open full-page versions of these charts, just click on the chart headings, which are hyperlinks.