This coming week is post-OPEX week which has tended to be volatile and to be bearish. The S&P rallied and is likely to correct in the coming week. This coming week has also been bearish seasonally. The monthly S&P 500 cycle also dips slightly. With the 10-day breadth line overbought, the market is too extended short-term and is vulnerable to a decline.
S&P Performance in Post-OPEX Week in October
Here are two short sale recommendations for the near term.
The Amgen AMGN weekly cycle (6 of 6 signals correct) peaks on October 19th and bottoms on November 12th. In addition, the monthly cycle (all 3 have been accurate) hits a high on the 27th. The period from the 18th through the 27th has been seasonally weak; the stock has dropped by 2.5% on average. The stock is likely to move closer to $220.
Amgen Weekly Cycle
Amgen Daily Graph
The weekly Kraft Heinz cycle (5 of the last 5 have been accurate) tops on October 19th and bottoms in December. The stock is overbought and is likely to fall to the $29-$30 level.
Kraft Heinz Weekly Cycle
Kraft Heinz Daily Graph