13 Oct ’22, 09:15 Central Euro Time:

The Bond is the only BEGOS Market trading at present outside of (below) its Neutral Range; volatility is light ahead of retail inflation data.  The S&P 500 has returned to a “textbook oversold” condition we deem as extreme: clearly by Market Trends the key linear regression trend of the Spoo continues as firmly negative, however the Index itself typically gets a bounce from such oversold condition; as to “how much bounce”, by the Spoo’s Market Profile, the key overhead apices are at present 3653, 3770 and 3795. Regardless, earnings valuation for the S&P remains very high given the positive interest rate environment:  the “live” P/E (futs-adj’d) is 32.2x and the yield 1.826% whereas that for the Five-Year T-Note’s 4.112%.  For the Econ Baro, in addition to the September’s CPI, we’ve also the month’s Treasury Budget.