Republic Risk: All Eyes on Apple and October Jobs Numbers

The S&P 500 and Nasdaq 100 have screamed out of outsold territories after last week's brutal selloffs. Now, the real test begins - staying above the 200-day moving average on the S&P 500.

Market Momentum: RED on the S&P 500 and RED on the Russell 2000

Our equity readings are critical to all decisions we make in the market. 

These sectors still remain red despite the current squeeze. This is due to the weakness at the end of last week.

Currently, 17 stocks in the S&P 500 are up more than 10% in a month — plus our additional factor. Meanwhile, 17 stocks on the index are down 10%. We still have 80% of equities under their 50-day moving average, and buying has come from deeply beaten-down sectors like real estate and utilities. The SPDR S&P 500 ETF (SPY) saw its Relative Strength Index push back above 50, and the MACD is signaling a bid.

However, the squeeze we witnessed this week is VERY similar to the buying that happened at the start of September and October. Proceed with caution.

Key Takeaways

• Funds have been crowding into the Magnificent Seven stocks as markets prepare for earnings from Apple (AAPL) this afternoon.

• The Fed Open Market Committee (FOMC) held interest rates …