Mike Santoli's market notes: Tech outperforming, election trade in energy, sentiment cautious

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Some upside follow-through into a new month and quarter, similar to the push into Q3 after June – like September - saw a late-month rebound from a quick pullback.

Some perceived lift from potential last-minute fiscal-relief agreement, but not sure that's the main driver. We have Nasdaq outperforming all day – not the area most levered to new government aid. Big Tech is where the stocks are still farthest below their extreme August peak prices, and there hot money got very short the Nasdaq 100 futures. So a catch-up/squeeze trade maybe.

The rally still operating within the same sideways recovery/chop zone from the past week or so. Similar ping pong action after the June pullback, FWIW. Seasonal script gets a bit dicey into mid-October, but everyone already knows that.

 

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