Look for choppy trading to continue
Tuesday closed the day with narrow range green day on mixed volume. The NYSE was higher than yesterday while the Nasdaq was slightly lower. Over all it was light and the normal for pre holiday action.
Crude closed up $1.37 at $60.17 on the day. Supply pressures prompted the rally when the market received news of the Alaska Pipeline supply cuts due to winds. About 25% of normal capacity is moving through the line now, the winds also slowed loading tankers awaiting crude at the Valdez docks. If the winds continue we could continue seeing this pricing pressure. Also Crude data is due out Wednesday. Gold rallied on the day up $6.60 to close at $628.70. However gold was overshadowed by platinums rally when news of a possible ETF based off the metal hit the wires.
Going into Wednesday we do have some economic data, but I am still expecting limited movement. The market hit the pause button ahead of Thanksgiving and doesn’t seem to be letting it hit play anytime soon. We are still showing some divergence and overbought conditions up in this thin air altitude we’ve reached. However, sideways motion can work that off so if we continue this chop into the weeks end things will start to change.
I don’t really have much of a bias going into Wednesday, partly due to the data being released. But primarily because I think it will be a quiet day on low volume, which leaves us at the mercy of the masses for direction. The charts say we are at resistance and should pullback, so we will watch for the same thing as we did on Monday. A test of the weeks highs then a pullback.
Some earnings of Interest for the week: Wednesday pre market — HRL, JLG, PDCO, POSS and nothing after the bell. Thursday markets are closed. Friday no reports due.
Week of November 20 — 24: 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) Wednesday’s pivot is 1405.25, weekly pivot is 1398.5. Intra day Support: 1403.50, 1402.75, 1400.25, 1398 and 1395.50. Resistance: 1406.50, 1408, 1411 and 1413.75. 60 minute chart is below.
NDX (Nasdaq 100) closed +5.07 at 1808.88. Support: 1803.85, 1790.96, 1786.71, 1780.17, 1768.22. Resistance: 1830.90, 1847.06, 1872.24
Good trading to everyone and enjoy Thanksgiving. I’ll see everyone on Friday.
Teresa Appleton has traded equities and options for
nine years and futures for seven. She is founder and CEO of TradeLogic, LLC. For
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