Early trading will set today’s tone
Monday started the week off as we thought it might. Mixed performance in the broader indexes on lighter volume. After a test of Fridayâ€™s highs we drifted lower and then back up. Pretty much a zig zag day on light volume. Nasdaq 100 and Nas Composite were green leaving the S&P 500 and Dow red.
Crude closed down 17 cents at $58.80. Gold was also down on the day to close at $622.10 -.40. Pretty quiet markets despite a siege on an oil facility in Nigeria. Which didnâ€™t seem to shake oil and the Leading indicators didnâ€™t really give gold a boost either.
Into Tuesday lets look for some weakness to retest Mondayâ€™s lows. There isnâ€™t any economic data or big earnings to focus on. Retail and semiconductors look like a place to focus this week with the light volume and shortened week. The Semiâ€™s (SOX chart below) gave a nice upside move today despite the broader indexes staying in a narrow range. Tech participation will be key to keep this rally pushing forward. There is still overbought conditions and light volume to contend with wonâ€™t help that this week. So pulling back under our own weight could come into play still this week, but also low volume helps to push us around to keep us right where we are. So donâ€™t think lower just because we are in overbought conditions. These pre holiday weekends can pull a rabbit out of the hat and do about anything due to decreased volume.
My bias on the open will be pullback and retest todayâ€™s lows, then see if the upside comes into play. I believe weâ€™ll hold range and be fairly quiet, so keep small profit goals in mind until we get through Thanksgiving week.
Some earnings of Interest for the week: Tuesday pre market â€” DE, DLTR, FRED, GME, JBX, MESA, UNFI and after the bell â€” BGP, BRCD, CWTR, PSS. Wednesday pre market â€” HRL, JLG, PDCO, POSS and nothing after the bell. Thursday markets are closed. Friday no reports due.
Week of November 20 â€” 24:
Tuesday nothing due out, Wednesday 8:30 Initial Claims, 10:00 Mich Sentiment, 10:30 Crude Inventories, Thursday nothing due out markets are closed for Thanksgiving, Friday nothing due out.
Market closures this week due to the holiday. NYSE, Nasdaq, Amex are all closed Thursday and closed at 1 on Friday. Futures are normal hours Wednesday and close at 2:15 eastern Friday. Friday is also Black Friday when retailers kick off the official shopping season and shoppers look for bargains.
ES (S&P 500 e-mini) Tuesdayâ€™s pivot is 1404.75, weekly pivot is 1398.5. Mondayâ€™s action was not bad despite the chop and slow motion movement. Volume was better than the price action showed, but a lot of that was in the first hour and last with a lot of thin air throughout the day. Intra day Support: 1404, 1402.25, 1400.25, 1398 and 1395.50. Resistance: 1406.50, 1408, 1411 and 1413.75. 60 minute chart is below.
SOX (Semiconductors) closed +8.47 at 491.72. Support: 485.88, 487.26, 482.13 and 479.41. Resistance: 493.32, 497.23, 500.
Keep it light and great trading to everyone.
Teresa Appleton has traded equities and options for
nine years and futures for seven. She is founder and CEO of TradeLogic, LLC. For
more information about Teresa and the training she offers stock, options and