Crude oil sits right at $100 a barrel. Corey Rosenbloom calls it a key psychological marker for the entire market.
He believes that one price decides whether the S&P 500 rallies or breaks this week.
Corey game plans the S&P 500 every session. On Friday, he flagged an oversold market pressing into support near 7680.
Monday delivered the rally he mapped. The S&P 500 bounced off that support shelf and hit his initial target.
The bigger trend still points up. Corey sees higher highs and higher lows, with the pullback forming a flag inside the uptrend.
Inflation keeps pressure on that setup. CPI came in at 3.7%. Oil continues to climb on the daily chart.
Fed Chair Kevin Warsh holds the next meeting on October 27th and 28th. Corey expects a pause, with a rate hike more likely in December.
Amazon, Micron, and Intel led Monday’s bounce. Chip stocks had taken heavy selling last week, and buyers stepped in on the dip.
Corey also sees money shifting between sectors rather than leaving stocks. Utilities fell while consumer discretionary climbed.
Here’s what Corey breaks down in tonight’s video:
- Crude oil near $100 acts as the trigger. A drop from here could fuel a rally, while a push to the prior high near $105 to $106 could break support like March.
- The S&P 500 rallied off Friday’s support shelf near 7680. Corey now looks for a move toward midpoint or higher targets.
- Sentiment sits at an extreme in fear. Traders leaning too short can get caught, and that can spark a fast rally.
- Wednesday brings earnings from Meta, Tesla, IBM, Lam Research, and Texas Instruments. Netflix reports Tuesday, and PMI data lands Friday.
Every pullback in this uptrend has rallied to a new high. Corey leans bullish and is watching oil to learn whether this one plays out differently.
