Stock Market Bears are Running Out of Time

US stocks are seasonally bearish from late August until mid-October.  Seasonal cycles are not precise so it possible there could be more downside action in the coming weeks.  However,  the bears are struggling.  On September 24^th, the three main US stock indices made a correction low, followed by a rally that retraced most of the drop.   There was a short-term peak on October 12^th and the subsequent decline has so far been shallow.

One of my best indicators hints another important bottom could be made on October 21^st.

Please see the 30- minute S&P 500 E-Mini December 2020 futures chart courtesy of Trading View.

The Market Profile indicator illustrates trading volume related to price level, the largest volume cluster represents value which a market will either travel towards or away from.  There are two areas of interest near where the S&P 500 closed today.  The first value area was made on October 19^th ; however, this level did not hold the decline that day.      

The next most current value area was made on October 6^{th .}    There was a sell off late in the October 20^th   trade session.  If there’s additional selling on October 21^st price could bottom in the value area.  The S&P E-Mini futures price of 3394 equates to about 3403 on the S&P 500. 

It’s possible an important stock market bottom could be made on October 21, 2020.

The stock market bears are running out of time.