$SPY TOP 20

PMI and Jobless claims will be the big ticket items on the economic calendar this week but I believe the earnings season will dominate the influence on the market.

So we should expect some wild swings and some volatility to start the week and some market movers trying to squeeze extra percentages leading up to important earnings releases.

The brief is always the same here, do not get played by this and do not play the earnings game, meaning, do not enter a position solely with the hope that a company will beat on earnings and there will be a short term bounce.....I have seen enough earnings seasons to know that it's a 50.50 call and you could lose a month or so of gains in one decision.

We always want to buy when support is confirmed, regardless of earnings or company announcements.

On the chart, $SPY is also in a tight rising wedge as it moves towards the end of the year, a break out to the upside and we have the melt up scenario confirmed for me

A break down from this wedge and we could be looking at the start of the correction.

Again, let the price action guide us and don't preempt the move, earnings season always has many twists and turns and we need to stay disciplined.

The upcoming economic calendar for the week starting October 21, 2024, is packed with key events and data releases that could significantly impact markets. Here's an overview of major highlights:

• Monday, October 21:

  • Existing Home Sales (September): A closely watched indicator of the housing market's health in the U.S.

  • Chicago Fed National Activity Index (September): A broad measure of economic activity.

• Tuesday, October 22:

  • S&P Global Manufacturing and Services PMI (October): Preliminary data for October, providing insight into the health of the manufacturing and services sectors.

  • Richmond Fed Manufacturing Index (October): Another key gauge of regional manufacturing activity.

• Wednesday, October 23:

  • MBA Mortgage Applications: Weekly data on mortgage activity, important for the housing market.

  • New Home Sales (September): Provides a deeper look at the housing market by analyzing new construction home sales.

• Thursday, October 24:

  • Initial Jobless Claims: A key measure of labor market health, reflecting the number of new claims for unemployment benefits.

  • Durable Goods Orders (September): A significant indicator of manufacturing activity.

  • Pending Home Sales (September): Another critical housing market metric, measuring contract signings for existing homes.

• Friday, October 25:

  • University of Michigan Consumer Sentiment (October): Final data for October on consumer confidence, which is closely tied to spending behavior.

These economic reports will provide insights into the U.S. economy’s performance, particularly in housing, manufacturing, and employment