{"id":54827,"date":"2020-10-17T14:19:58","date_gmt":"2020-10-17T21:19:58","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=54827"},"modified":"2020-10-17T14:43:00","modified_gmt":"2020-10-17T21:43:00","slug":"t2108-update-a-stock-market-cooling","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2020\/10\/17\/t2108-update-a-stock-market-cooling\/","title":{"rendered":"A Stock Market Cooling &#8211; Above the 40 (October 16, 2020)"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\"><strong>Stock Market Statistics<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>AT40<\/strong> = 56.5% of stocks are trading above their respective 40-day moving averages (DMAs)<\/li><li><strong>AT200<\/strong> = 53.1% of stocks are trading above their respective 200DMAs<\/li><li><strong>VIX<\/strong> = 27.4<\/li><li><strong>Short-term Trading Call<\/strong>: cautiously bullish<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Stock Market Commentary<\/strong><\/h2>\n\n\n\n<p>The stock market made a bullish move last week as financials broke out, but <a href=\"https:\/\/drduru.com\/onetwentytwo\/2020\/10\/11\/t2108-update-stock-market-rebounds-stronger-than-before\/\">I noted signs pointing to a cooling<\/a>. The stock market cooling started the very next day. Buyers stepped back in on Thursday&#8217;s gap down, but they were unable to hold the Friday intraday high. Overall, the cooling was likely just the refreshment the stock market needed to prepare for the next push higher.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The Stock Market Indices<\/strong><\/h3>\n\n\n\n<p>The S&amp;P 500 (SPY) is trying to hold onto the bottom of its upper Bollinger Band (BB). This support could provide the launchpad for the next move higher. Still, a fade into the close made the effort more tenuous. The index closed the day flat. The stakes are high since the S&amp;P 500 conveniently began this cooling just short of its all-time high.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/10\/201016_SP500-Standard-_-Poors-500.png\"><img loading=\"lazy\" decoding=\"async\" width=\"550\" height=\"375\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/10\/201016_SP500-Standard-_-Poors-500.png\" alt=\"The S&amp;P 500 (SPY) faded to a flat close.\" class=\"wp-image-54834\"\/><\/a><figcaption>The S&#038;P 500 (SPY) faded to a flat close.<\/figcaption><\/figure><\/div>\n\n\n\n<br><script async=\"\" src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\n<ins class=\"adsbygoogle\" style=\"display:block; text-align:center;\" data-ad-layout=\"in-article\" data-ad-format=\"fluid\" data-ad-client=\"ca-pub-1196033822186410\" data-ad-slot=\"3478942445\"><\/ins>\n<script>\n     (adsbygoogle = window.adsbygoogle || []).push({});\n<\/script><br>\n\n\n\n<p>The NASDAQ (COMPQX) lost 0.4%. Like the S&amp;P 500, the tech-laden index is trying to hold onto the bottom of its upper-BB. The NASDAQ has high stakes in this cooling process as it also stopped just short of its all-time high.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/10\/201016_NASDAQ-Nasdaq.png\"><img loading=\"lazy\" decoding=\"async\" width=\"550\" height=\"375\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/10\/201016_NASDAQ-Nasdaq.png\" alt=\"NASDAQ (COMPQX) lost 0.4% to end a week where 12,000 served as resistance.\" class=\"wp-image-54832\"\/><\/a><figcaption>NASDAQ (COMPQX) lost 0.4% to end a week where 12,000 served as resistance.<\/figcaption><\/figure><\/div>\n\n\n\n<p>The iShares Russell 2000 Index Fund ETF (IWM) is also at the bottom of its upper-BB, but the index of small caps is better positioned than the bigger indices. IWM ended a week of churn near the top of the consolidation range and still looks ready for a fresh breakout. I am primed to buy over $164.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/10\/201016_IWM-iShares-Russell-2000-Index-Fund.png\"><img loading=\"lazy\" decoding=\"async\" width=\"550\" height=\"375\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/10\/201016_IWM-iShares-Russell-2000-Index-Fund.png\" alt=\"The iShares Russell 2000 Index Fund ETF (IWM) lost 0.3% in a week where 164 served as resistance.\" class=\"wp-image-54831\"\/><\/a><figcaption>The iShares Russell 2000 Index Fund ETF (IWM) lost 0.3% in a week where 164 served as resistance.<\/figcaption><\/figure><\/div>\n\n\n\n<p>The SPDRs Select Sector Financial (XLF) provided <a href=\"https:\/\/drduru.com\/onetwentytwo\/2020\/10\/11\/t2108-update-stock-market-rebounds-stronger-than-before\/\">a new piece to the puzzle for the bullish case<\/a> at the beginning of the week. Yet, XLF could not escape the cooling process that wafted over much of the stock market. XLF is now fighting to hang onto converged support at its 50 and 200DMAs.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/10\/201016_XLF-SPDRs-Select-Sector-Financial.png\"><img loading=\"lazy\" decoding=\"async\" width=\"550\" height=\"375\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/10\/201016_XLF-SPDRs-Select-Sector-Financial.png\" alt=\"The SPDRs Select Sector Financial (XLF) clung to converged support at its 50 and 200DMAs.\" class=\"wp-image-54837\"\/><\/a><figcaption>The SPDRs Select Sector Financial (XLF) clung to converged support at its 50 and 200DMAs.<\/figcaption><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Stock Market Volatility<\/strong><\/h3>\n\n\n\n<p>The volatility index (VIX) is floundering around with no direction. I have stared and stared looking for direction. Taking a big step back, I see an index that has gone absolutely nowhere in over a month. Nothing to do here but wait.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/10\/201016_VIX.png\"><img loading=\"lazy\" decoding=\"async\" width=\"550\" height=\"375\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/10\/201016_VIX.png\" alt=\"The volatility index (VIX) increased 1.6% as it continues to languish.\" class=\"wp-image-54835\"\/><\/a><figcaption>The volatility index (VIX) increased 1.6% as it continues to languish.<\/figcaption><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The Short-Term Trading Call for the Cooling Process<\/strong><\/h3>\n\n\n\n<p>With the stock marketing cooling, the short-term trading call stays at cautiously bullish. Big risks definitely lay ahead, but I see no point in trying to overthink them. <a href=\"https:\/\/drduru.com\/onetwentytwo\/t2108-resource-page\/\">AT40 (T2108)<\/a>, the percentage of stocks trading above their respective 40DMAs, closed the week at 56.5%. The cooling from the low 60s instead of from the high 60s narrowly averted a rating downgrade on the short-term trading call (to neutral).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Stock Chart Reviews \u2013 Video Summary<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-embed-youtube aligncenter wp-block-embed is-type-video is-provider-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"A Stock Market Cooling - Above the 40\" width=\"1200\" height=\"675\" src=\"https:\/\/www.youtube.com\/embed\/c95iZ-WcmIQ?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Stock Chart Reviews &#8211; Below the 50DMA<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>DraftKings<\/strong> (DKNG)<\/h3>\n\n\n\n<p>Since identifying <a href=\"https:\/\/drduru.com\/onetwentytwo\/2020\/09\/20\/t2108-update-tech-stocks-break-down\/\">the breakout<\/a>, I looked for a buyable dip in fantasy sports leader DraftKings (DKNG). The dip is finally here. However, the dip is not yet buyable because the stock slipped by 50DMA support. I am a buyer on a close above Friday&#8217;s intraday high. Further selling could take DKNG right back to middle of the summer&#8217;s consolidation zone.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/10\/201016_DKNG-DraftKings.png\"><img loading=\"lazy\" decoding=\"async\" width=\"550\" height=\"375\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/10\/201016_DKNG-DraftKings.png\" alt=\"DraftKings (DKNG) closed below its 50DMA as a downtrend from the all-time high continues.\" class=\"wp-image-54829\"\/><\/a><figcaption>DraftKings (DKNG) closed below its 50DMA as a downtrend from the all-time high continues.<\/figcaption><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Fastly Inc.<\/strong> (FSLY)<\/h3>\n\n\n\n<p>I have successfully traded in and out of FSLY numerous times. The plunge in Fastly (FSLY) last week woke me up bigtime.<\/p>\n\n\n\n<p>I got caught with my hand in the cookie jar after overplaying my hand in the wake of a calendar call spread from the previous week. FSLY blew right through my strike price. Instead of just accepting the small loss, I covered the short side of the spread and initiated a new short call. The adjustment created a vertical spread expiring last Friday and left a lot of risk in the deep in-the-money call. In these cases, I sometimes buy a put option as a protective backstop. (Upon further thought, an even better, risk-appropriate move, is replacing the calendar spread with a new call spread at higher strikes.)<\/p>\n\n\n\n<p>The plunge on Thursday completely blew out my position. The wake-up call forced me to review risks throughout my portfolios. I proceeded to do some major pruning. I am still bullish on the stock market, but I am a LOT more comfortable with the level of risk I am carrying. In retrospect, I can see how success made me dangerously complacent about risk.<\/p>\n\n\n\n<p>On Friday, FSLY failed at 50DMA resistance. I bought a put option as a play on a return to the bottom of the summer&#8217;s trading range. Given <a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1517413\/000151741320000235\/fastly-sx3asrprojectgr.htm\" target=\"_blank\" rel=\"noreferrer noopener\">insiders are dumping 6.4 million shares of stock<\/a> in the wake of <a href=\"https:\/\/investors.fastly.com\/news\/news-details\/2020\/Fastly-Provides-Preliminary-Third-Quarter-Revenue-Results\/default.aspx\" target=\"_blank\" rel=\"noreferrer noopener\">the revenue warning<\/a>, I think FSLY is at risk of a test of 200DMA support in due time. For context, <a href=\"https:\/\/finance.yahoo.com\/quote\/FSLY?p=FSLY\" target=\"_blank\" rel=\"noreferrer noopener\">FSLY averages about 10.7M shares traded daily<\/a>. Insiders are dumping the equivalent of almost 10% of <a href=\"https:\/\/finance.yahoo.com\/quote\/FSLY\/key-statistics?p=FSLY\" target=\"_blank\" rel=\"noreferrer noopener\">FSLY&#8217;s float<\/a>.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/10\/201016_FSLY-Fastly.png\"><img loading=\"lazy\" decoding=\"async\" width=\"550\" height=\"375\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/10\/201016_FSLY-Fastly.png\" alt=\"Fastly (FSLY) lost 5.6% a day after a revenue warning plunged the stock 27.2%.\" class=\"wp-image-54830\"\/><\/a><figcaption>Fastly (FSLY) lost 5.6% a day after a revenue warning plunged the stock 27.2%.<\/figcaption><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Stock Chart Reviews &#8211; Above the 50DMA<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Caterpillar Inc <\/strong>(CAT)<\/h3>\n\n\n\n<p>The bullish streak continues for Caterpillar (CAT). CAT gained 2.3% on the heels of a bullish analyst report. CAT&#8217;s all-time high sits tantalizingly close around $173. CAT&#8217;s bullish behavior is telling &#8211; one more indicator of strength in industrial plays.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/10\/201016_CAT-Caterpillar.png\"><img loading=\"lazy\" decoding=\"async\" width=\"550\" height=\"375\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/10\/201016_CAT-Caterpillar.png\" alt=\"Caterpillar (CAT) gapped higher to a 2.3% gain as it closes in on its all-time high set in January, 2018.\" class=\"wp-image-54828\"\/><\/a><figcaption>Caterpillar (CAT) gapped higher to a 2.3% gain as it closes in on its all-time high set in January, 2018.<\/figcaption><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Sleep Number Corporation<\/strong> (SNBR)<\/h3>\n\n\n\n<p>Sleep Number Corporation (SNBR) broke out two Fridays ago. The stock hit an all-time high on Friday on high volume in the wake of a strong earnings report. SNBR is one of many household or housing-related stocks charging to greater heights. I am looking for a dip to buy.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/10\/201016_SNBR-Sleep-Number-Corporation.png\"><img loading=\"lazy\" decoding=\"async\" width=\"550\" height=\"375\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/10\/201016_SNBR-Sleep-Number-Corporation.png\" alt=\"Sleep Number Corporation (SNBR) fell 2.5% off its all-time high.\" class=\"wp-image-54833\"\/><\/a><figcaption>Sleep Number Corporation (SNBR) fell 2.5% off its all-time high.<\/figcaption><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Wix.com Ltd <\/strong>(WIX)<\/h3>\n\n\n\n<p>Wix.com Ltd (WIX) is part of the large crew of new digital economy stocks. After a blistering streak to all-time highs in July and August, WIX has gone nowhere. Friday&#8217;s 2.5% loss reminds me that WIX is losing momentum despite a valiant recovery from September&#8217;s 50DMA breakdown. I do not see a new trade here, but I continue to monitor for one.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/10\/201016_WIX-WixdotCom.png\"><img loading=\"lazy\" decoding=\"async\" width=\"550\" height=\"375\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/10\/201016_WIX-WixdotCom.png\" alt=\"Wix.com (WIX) lost 2.5% and closed just above 50DMA support. WIX has gone nowhere in 3 months.\" class=\"wp-image-54836\"\/><\/a><figcaption>Wix.com (WIX) lost 2.5% and closed just above 50DMA support. WIX has gone nowhere in 3 months.<\/figcaption><\/figure><\/div>\n\n\n\n<p>&#8212; &#8211; &#8212;<br>\n<\/p>\n\n\n\n<center><br>\n<strong>FOLLOW Dr. Duru&#8217;s commentary on financial markets via <a href=\"https:\/\/feedburner.google.com\/fb\/a\/mailverify?uri=onetwentytwo\" target=\"_blank\" rel=\"noopener noreferrer\">email<\/a>, <a href=\"https:\/\/stocktwits.com\/DrDuru\" target=\"_blank\" rel=\"noopener noreferrer\">StockTwits<\/a>, <a href=\"https:\/\/twitter.com\/DrDuru\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>, and even <a href=\"https:\/\/www.instagram.com\/drduru_market_breadth\/\" target=\"_blank\" rel=\"noopener noreferrer\">Instagram<\/a>!<\/strong><br>\n<\/center>\n\n\n\n<p>&#8220;Above the 40&#8221; uses the percentage of stocks trading above their respective 40-day moving averages (DMAs) to assess the technical health of the stock market and to identify extremes in market sentiment that are likely to reverse. Abbreviated as AT40, Above the 40 is an alternative label for &#8220;T2108&#8221; which was created by <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.worden.com\/CURRENTAFPROMO.aspx?AFCODE=866\" target=\"_blank\">Worden<\/a>. Learn more about T2108 on my <a href=\"https:\/\/drduru.com\/onetwentytwo\/about\/t2108-resource-page\/\">T2108 Resource Page<\/a>. AT200, or T2107, measures the percentage of stocks trading above their respective 200DMAs.<\/p>\n\n\n\n<p><strong>Active AT40 (T2108) periods<\/strong>: Day #15 over 20%, Day #14 over 30%, Day #11 over 40%, Day #8 over 50% (overperiod), Day #4 under 60% (underperiod), Day #33 under 70%<\/p>\n\n\n\n<center><br>\n<strong>Daily AT40 (T2108)<\/strong><br>\n<figure><a href=\"https:\/\/www.drduru.com\/money\/charts\/T2108-daily_s.png\"><img loading=\"lazy\" decoding=\"async\" title=\"T2108 (DAILY)\" src=\"https:\/\/www.drduru.com\/money\/charts\/T2108-daily_s.png\" alt=\"\" width=\"500\" height=\"350\"><\/a><\/figure><p><\/p>\n<p>Black line: AT40 (T2108) (% measured on the right)<br>\nRed line: Overbought threshold (70%); Blue line: Oversold threshold (20%)<br>\n<\/p><\/center>\n\n\n\n<center><br>\n<strong>Weekly AT40 (T2108)<\/strong><br>\n<figure><a href=\"https:\/\/www.drduru.com\/money\/charts\/T2108-weekly_s.png\"><img loading=\"lazy\" decoding=\"async\" title=\"Weekly T2108\" src=\"https:\/\/www.drduru.com\/money\/charts\/T2108-weekly_s.png\" alt=\"Weekly T2108\" width=\"500\" height=\"350\"><\/a><\/figure><br>\n*<strong>All charts created using <\/strong><strong>FreeStockCharts<\/strong> unless otherwise stated<\/center>\n\n\n\n<p>The T2108 charts above are my LATEST updates independent of the date of this given AT40 post. For my latest AT40 post <a href=\"https:\/\/drduru.com\/onetwentytwo\/tag\/t2108\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">click here<\/a>.<\/p>\n\n\n\n<p>Be careful out there!<\/p>\n\n\n\n<p><strong>Full disclosure<\/strong>: long FSLY puts, long UVXY<\/p>\n\n\n\n<p>*Charting notes: FreeStockCharts stock prices are not adjusted for dividends. TradingView.com charts for currencies use Tokyo time as the start of the forex trading day. FreeStockCharts currency charts are based on Eastern U.S. time to define the trading day.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Stock Market Statistics AT40 = 56.5% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 53.1% of stocks are trading above their respective 200DMAs VIX = 27.4 Short-term Trading Call: cautiously bullish Stock Market Commentary The stock market made a bullish move last week as financials broke out, but I noted &#8230; <a title=\"A Stock Market Cooling &#8211; Above the 40 (October 16, 2020)\" class=\"read-more\" href=\"https:\/\/drduru.com\/onetwentytwo\/2020\/10\/17\/t2108-update-a-stock-market-cooling\/\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[584,482,548,219,43,599,1312,338,1311,838,62,982],"tags":[1819,64,63,1955,2521,2552,2337,312,2244,909,413,65,2550,2551,362,226,1368,1408,311],"class_list":["post-54827","post","type-post","status-publish","format-standard","hentry","category-bollinger-band","category-breakout","category-financials","category-high-tech","category-industrial-sector","category-internet","category-manufacturing-2","category-retail","category-software","category-sports","category-technical-analysis","category-trading-range","tag-at40","tag-cat","tag-caterpillar-inc","tag-compqx","tag-dkng","tag-draftkings","tag-fastly","tag-financial-select-sector-spdr","tag-fsly","tag-iwm","tag-nasdaq","tag-sp-500","tag-sleep-number-corporation","tag-snbr","tag-spy","tag-t2108","tag-wix","tag-wix-com-ltd","tag-xlf"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>A Stock Market Cooling - ONE-TWENTY TWO: Trading Financial Markets<\/title>\n<meta name=\"description\" content=\"A stock market cooling stopped the S&amp;P 500 short of its all-time high. Buyers and bulls are now defending a new critical support level.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/drduru.com\/onetwentytwo\/2020\/10\/17\/t2108-update-a-stock-market-cooling\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Stock Market Cooling - Above the 40 (October 16, 2020)\" \/>\n<meta property=\"og:description\" content=\"A stock market cooling stopped the S&amp;P 500 short of its all-time high. Buyers and bulls are now defending a new critical support level.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/drduru.com\/onetwentytwo\/2020\/10\/17\/t2108-update-a-stock-market-cooling\/\" \/>\n<meta property=\"og:site_name\" content=\"ONE-TWENTY TWO: Trading Financial Markets\" \/>\n<meta property=\"article:published_time\" content=\"2020-10-17T21:19:58+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-10-17T21:43:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/10\/201016_SP500-Standard-_-Poors-500.png\" \/>\n\t<meta property=\"og:image:width\" content=\"550\" \/>\n\t<meta property=\"og:image:height\" content=\"375\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Dr. Duru\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"A Stock Market Cooling - Above the 40 (October 16, 2020)\" \/>\n<meta name=\"twitter:description\" content=\"A stock market cooling stopped the S&amp;P 500 short of its all-time high. Buyers and bulls are now defending a new critical support level.\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/10\/201016_SP500-Standard-_-Poors-500.png\" \/>\n<meta name=\"twitter:creator\" content=\"@drduru\" \/>\n<meta name=\"twitter:site\" content=\"@drduru\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Dr. Duru\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2020\\\/10\\\/17\\\/t2108-update-a-stock-market-cooling\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2020\\\/10\\\/17\\\/t2108-update-a-stock-market-cooling\\\/\"},\"author\":{\"name\":\"Dr. Duru\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#\\\/schema\\\/person\\\/d9569fde6c701b021a8d958f775be9a0\"},\"headline\":\"A Stock Market Cooling &#8211; Above the 40 (October 16, 2020)\",\"datePublished\":\"2020-10-17T21:19:58+00:00\",\"dateModified\":\"2020-10-17T21:43:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2020\\\/10\\\/17\\\/t2108-update-a-stock-market-cooling\\\/\"},\"wordCount\":1315,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#\\\/schema\\\/person\\\/d9569fde6c701b021a8d958f775be9a0\"},\"image\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2020\\\/10\\\/17\\\/t2108-update-a-stock-market-cooling\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2020\\\/10\\\/201016_SP500-Standard-_-Poors-500.png\",\"keywords\":[\"AT40\",\"CAT\",\"Caterpillar Inc\",\"COMPQX\",\"DKNG\",\"DraftKings\",\"Fastly\",\"Financial Select Sector SPDR\",\"FSLY\",\"IWM\",\"NASDAQ\",\"S&amp;P 500\",\"Sleep Number Corporation\",\"SNBR\",\"SPY\",\"T2108\",\"WIX\",\"Wix.com Ltd\",\"XLF\"],\"articleSection\":[\"Bollinger Band\",\"Breakout\",\"Financials\",\"High Tech\",\"Industrial Sector\",\"Internet\",\"Manufacturing\",\"Retail\",\"Software\",\"Sports\",\"Technical Analysis\",\"Trading Range\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2020\\\/10\\\/17\\\/t2108-update-a-stock-market-cooling\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2020\\\/10\\\/17\\\/t2108-update-a-stock-market-cooling\\\/\",\"url\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2020\\\/10\\\/17\\\/t2108-update-a-stock-market-cooling\\\/\",\"name\":\"A Stock Market Cooling - ONE-TWENTY TWO: Trading Financial Markets\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2020\\\/10\\\/17\\\/t2108-update-a-stock-market-cooling\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2020\\\/10\\\/17\\\/t2108-update-a-stock-market-cooling\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2020\\\/10\\\/201016_SP500-Standard-_-Poors-500.png\",\"datePublished\":\"2020-10-17T21:19:58+00:00\",\"dateModified\":\"2020-10-17T21:43:00+00:00\",\"description\":\"A stock market cooling stopped the S&P 500 short of its all-time high. Buyers and bulls are now defending a new critical support level.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2020\\\/10\\\/17\\\/t2108-update-a-stock-market-cooling\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2020\\\/10\\\/17\\\/t2108-update-a-stock-market-cooling\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2020\\\/10\\\/17\\\/t2108-update-a-stock-market-cooling\\\/#primaryimage\",\"url\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2020\\\/10\\\/201016_SP500-Standard-_-Poors-500.png\",\"contentUrl\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2020\\\/10\\\/201016_SP500-Standard-_-Poors-500.png\",\"width\":550,\"height\":375,\"caption\":\"The S&P 500 (SPY) faded to a flat close.\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2020\\\/10\\\/17\\\/t2108-update-a-stock-market-cooling\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"A Stock Market Cooling &#8211; Above the 40 (October 16, 2020)\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#website\",\"url\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/\",\"name\":\"ONE-TWENTY TWO: Trading Financial Markets\",\"description\":\"Exploring the poetry in financial markets for students of money and economy since the year 2000.\",\"publisher\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#\\\/schema\\\/person\\\/d9569fde6c701b021a8d958f775be9a0\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":[\"Person\",\"Organization\"],\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#\\\/schema\\\/person\\\/d9569fde6c701b021a8d958f775be9a0\",\"name\":\"Dr. Duru\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2018\\\/09\\\/cropped-masthead-header.jpg\",\"url\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2018\\\/09\\\/cropped-masthead-header.jpg\",\"contentUrl\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2018\\\/09\\\/cropped-masthead-header.jpg\",\"width\":900,\"height\":100,\"caption\":\"Dr. Duru\"},\"logo\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2018\\\/09\\\/cropped-masthead-header.jpg\"},\"sameAs\":[\"http:\\\/\\\/www.drduru.com\\\/onetwentytwo\",\"https:\\\/\\\/www.instagram.com\\\/drduru_market_breadth\\\/\",\"https:\\\/\\\/x.com\\\/drduru\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"A Stock Market Cooling - ONE-TWENTY TWO: Trading Financial Markets","description":"A stock market cooling stopped the S&P 500 short of its all-time high. Buyers and bulls are now defending a new critical support level.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/drduru.com\/onetwentytwo\/2020\/10\/17\/t2108-update-a-stock-market-cooling\/","og_locale":"en_US","og_type":"article","og_title":"A Stock Market Cooling - Above the 40 (October 16, 2020)","og_description":"A stock market cooling stopped the S&P 500 short of its all-time high. Buyers and bulls are now defending a new critical support level.","og_url":"https:\/\/drduru.com\/onetwentytwo\/2020\/10\/17\/t2108-update-a-stock-market-cooling\/","og_site_name":"ONE-TWENTY TWO: Trading Financial Markets","article_published_time":"2020-10-17T21:19:58+00:00","article_modified_time":"2020-10-17T21:43:00+00:00","og_image":[{"width":550,"height":375,"url":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/10\/201016_SP500-Standard-_-Poors-500.png","type":"image\/png"}],"author":"Dr. Duru","twitter_card":"summary_large_image","twitter_title":"A Stock Market Cooling - Above the 40 (October 16, 2020)","twitter_description":"A stock market cooling stopped the S&P 500 short of its all-time high. Buyers and bulls are now defending a new critical support level.","twitter_image":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/10\/201016_SP500-Standard-_-Poors-500.png","twitter_creator":"@drduru","twitter_site":"@drduru","twitter_misc":{"Written by":"Dr. Duru","Est. reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/drduru.com\/onetwentytwo\/2020\/10\/17\/t2108-update-a-stock-market-cooling\/#article","isPartOf":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2020\/10\/17\/t2108-update-a-stock-market-cooling\/"},"author":{"name":"Dr. Duru","@id":"https:\/\/drduru.com\/onetwentytwo\/#\/schema\/person\/d9569fde6c701b021a8d958f775be9a0"},"headline":"A Stock Market Cooling &#8211; Above the 40 (October 16, 2020)","datePublished":"2020-10-17T21:19:58+00:00","dateModified":"2020-10-17T21:43:00+00:00","mainEntityOfPage":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2020\/10\/17\/t2108-update-a-stock-market-cooling\/"},"wordCount":1315,"commentCount":0,"publisher":{"@id":"https:\/\/drduru.com\/onetwentytwo\/#\/schema\/person\/d9569fde6c701b021a8d958f775be9a0"},"image":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2020\/10\/17\/t2108-update-a-stock-market-cooling\/#primaryimage"},"thumbnailUrl":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/10\/201016_SP500-Standard-_-Poors-500.png","keywords":["AT40","CAT","Caterpillar Inc","COMPQX","DKNG","DraftKings","Fastly","Financial Select Sector SPDR","FSLY","IWM","NASDAQ","S&amp;P 500","Sleep Number Corporation","SNBR","SPY","T2108","WIX","Wix.com Ltd","XLF"],"articleSection":["Bollinger Band","Breakout","Financials","High Tech","Industrial Sector","Internet","Manufacturing","Retail","Software","Sports","Technical Analysis","Trading Range"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/drduru.com\/onetwentytwo\/2020\/10\/17\/t2108-update-a-stock-market-cooling\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/drduru.com\/onetwentytwo\/2020\/10\/17\/t2108-update-a-stock-market-cooling\/","url":"https:\/\/drduru.com\/onetwentytwo\/2020\/10\/17\/t2108-update-a-stock-market-cooling\/","name":"A Stock Market Cooling - ONE-TWENTY TWO: Trading Financial Markets","isPartOf":{"@id":"https:\/\/drduru.com\/onetwentytwo\/#website"},"primaryImageOfPage":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2020\/10\/17\/t2108-update-a-stock-market-cooling\/#primaryimage"},"image":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2020\/10\/17\/t2108-update-a-stock-market-cooling\/#primaryimage"},"thumbnailUrl":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/10\/201016_SP500-Standard-_-Poors-500.png","datePublished":"2020-10-17T21:19:58+00:00","dateModified":"2020-10-17T21:43:00+00:00","description":"A stock market cooling stopped the S&P 500 short of its all-time high. Buyers and bulls are now defending a new critical support level.","breadcrumb":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2020\/10\/17\/t2108-update-a-stock-market-cooling\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/drduru.com\/onetwentytwo\/2020\/10\/17\/t2108-update-a-stock-market-cooling\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/drduru.com\/onetwentytwo\/2020\/10\/17\/t2108-update-a-stock-market-cooling\/#primaryimage","url":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/10\/201016_SP500-Standard-_-Poors-500.png","contentUrl":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/10\/201016_SP500-Standard-_-Poors-500.png","width":550,"height":375,"caption":"The S&P 500 (SPY) faded to a flat close."},{"@type":"BreadcrumbList","@id":"https:\/\/drduru.com\/onetwentytwo\/2020\/10\/17\/t2108-update-a-stock-market-cooling\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/drduru.com\/onetwentytwo\/"},{"@type":"ListItem","position":2,"name":"A Stock Market Cooling &#8211; Above the 40 (October 16, 2020)"}]},{"@type":"WebSite","@id":"https:\/\/drduru.com\/onetwentytwo\/#website","url":"https:\/\/drduru.com\/onetwentytwo\/","name":"ONE-TWENTY TWO: Trading Financial Markets","description":"Exploring the poetry in financial markets for students of money and economy since the year 2000.","publisher":{"@id":"https:\/\/drduru.com\/onetwentytwo\/#\/schema\/person\/d9569fde6c701b021a8d958f775be9a0"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/drduru.com\/onetwentytwo\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":["Person","Organization"],"@id":"https:\/\/drduru.com\/onetwentytwo\/#\/schema\/person\/d9569fde6c701b021a8d958f775be9a0","name":"Dr. Duru","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/09\/cropped-masthead-header.jpg","url":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/09\/cropped-masthead-header.jpg","contentUrl":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/09\/cropped-masthead-header.jpg","width":900,"height":100,"caption":"Dr. Duru"},"logo":{"@id":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/09\/cropped-masthead-header.jpg"},"sameAs":["http:\/\/www.drduru.com\/onetwentytwo","https:\/\/www.instagram.com\/drduru_market_breadth\/","https:\/\/x.com\/drduru"]}]}},"_links":{"self":[{"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/posts\/54827","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/comments?post=54827"}],"version-history":[{"count":6,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/posts\/54827\/revisions"}],"predecessor-version":[{"id":54844,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/posts\/54827\/revisions\/54844"}],"wp:attachment":[{"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/media?parent=54827"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/categories?post=54827"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/tags?post=54827"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}