{"id":107871,"date":"2021-10-20T10:00:00","date_gmt":"2021-10-20T14:00:00","guid":{"rendered":"https:\/\/ibkrcampus.com\/?p=107871"},"modified":"2022-11-21T09:48:34","modified_gmt":"2022-11-21T14:48:34","slug":"bears-have-their-work-cut-out-for-them","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/macro\/bears-have-their-work-cut-out-for-them\/","title":{"rendered":"Bears Have Their Work Cut Out For Them"},"content":{"rendered":"\n

The S&P 500 and Nasdaq Composite have enjoyed five straight winning sessions. During that streak, they have increased 3.9% and 4.6%, respectively, yet their uptrending ways go back even further. Since their lows on October 4, they are up 5.6% and 6.7%, respectively.<\/p>\n\n\n\n

Those hefty moves could explain some of the hesitant-looking action in the futures market, as traders sniff the potential for a consolidation trade of some kind taking root.<\/p>\n\n\n\n

Currently, the S&P 500 futures are flat and are trading 0.2% above fair value, the Nasdaq 100 futures are up 12 points and are trading 0.2% above fair value, and the Dow Jones Industrial Average futures are down 23 points but are trading 0.3% above fair value.<\/p>\n\n\n\n

It is notable that, despite the robust gains logged in recent sessions, the stock market isn’t buckling to selling pressure even though it appears overextended on a short-term basis. This suggests the onus is going to be on the market bears to change the trading tone.<\/p>\n\n\n\n

They will have a challenge in front of them today. Most of the earnings results have been better than expected, there are reports that the Democrats may be getting close to an agreement on a $1.75-1.9 trillion social spending package by the end of the week, and commodity prices are coming off the boil.<\/p>\n\n\n\n

Still, there is enough to cling to that would provide some cover to try to force the action:<\/p>\n\n\n\n