Before the Open

We believe that this earnings season...especially the earnings guidance that will be provided...will be more important than the assassination attempt...for the direction of the stock market over the coming weeks/months.

The S&P 500 and the NDX Nasdaq 100 WILL decline substantially if the large-cap tech stocks decline in a significant way…for the simple reason that these stocks are SO highly weighted in those indices.

The S&P 500 and the NDX Nasdaq 100 are seeing the kind of overbought conditions that we have not seen since September 2020…just before a correction.  Therefore, the stock market could/should be vulnerable to any material negative news we might get over the near-term.

We should also get some dramatic excitement in the realm of politics.  In fact, we believe next week will be an historic one for the political arena.

One very well-known stock has reached the kind of oversold level that makes it VERY appealing for a very strong multi-week bounce (and maybe a strong longer-term rally as well).