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U.S. STOCKS ADVANCE IN EARLY TRADE (1020 EDT/1420 GMT

Major U.S. averages are higher in the early stages of trading on Monday, with the Dow .DJI and S&P 500 .SPX on track to snap three-session losing skids, which put the benchmark S&P index down more than 10% from its July high at Friday's close.

Gainers are led by the S&P 500 communication services .SPLRCL sector, which is up roughly 2%, while energy .SPNY is the sole declining sector as crude prices dropped more than 2% on easing concerns about the Israel-Hamas war affecting supply from the region.

McDonald's MCD.N is gaining more than 1% after posting its quarterly results, buoyed by new launches, promotions and demand for its more affordable burgers and fries, helping to lift the Dow.

Western Digital WDC.O is jumping more than 8% after the company said it would spin off its flash memory business that has been grappling with a supply glut after talks of merging the unit with Japan's Kioxia stalled.

Below is your market snapshot:

(Chuck Mikolajczak)

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S&P 500 INDEX: MIGHT SCARY A OCTOBER, LEAD TO A DARING NOVEMBER? (0900 EDT/1300 GMT)

The S&P 500 index .SPX, which ended Friday down about 4% so far this month, is on track for a third-straight monthly decline. In fact, the benchmark index is on pace for its biggest October slide since 2018.

Bulls are hoping for a better November. Since 1950, on average, with a 1.7% rise, November has been the best month of the year for the S&P 500 index.

That said, with the SPX having ended Friday down 10.3% from its July 31 closing high, traders have been forced to eye deeper support levels:

The SPX did end Friday at 4,117.37, which was just above a weekly Gann Line, proving support around 4,116. Gann Lines are trend lines running at certain angles off significant highs and lows).

This line dips to around 4,107 this week, and as stands e-mini-S&P 500 futures EScv1 are suggesting an opening bounce for the SPX of more than 20 points.

The index will now confront initial resistance in the at 4,155-4,175 area, which includes the 50% retracement of the 2022 decline and the 100-week moving average.

The 23.6% retracement of the March 2020-January 2022 advance is at 4,198.70, and the early October low was at 4,216.45. There is a weekly Gann Line proving resistance this week around 4,245.

On the downside, a break of last week's 4,103.78 low would suggest the SPX can threaten the early-May trough at 4,048.28, while the 38.2% Fibonacci retracement of the 2022 decline is at 3,998.51.

The rising 200-WMA should be around 3,945 this week. There is a weekly Gann Line around 3,868 this week. The 38.2% retracement of the Mar 2020-January 2022 advance is at 3,815.20, and the March 2023 low was at 3,808.86.

Meanwhile, the Nasdaq Composite .IXIC has also taken a dive this October, though one internal measure, which is now down to 7%, suggests it may be ripe to re-group - click here:

(Terence Gabriel)

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(Terence Gabriel is a Reuters market analyst. The views expressed are his own)