Nasdaq 100 and SOX at Critical Levels
Thursday another red day across the broader markets on light volume.
Economic data rocked the boat and sent the buyers home and let the sellers have a trend day. Again we fall on light volume but this is definitely allowing some corrective action this week. Taking a look at the moving averages, we are starting to see the 10ma’s start to near the 20ema’s and that could start to take the bullishness out of this market. So keep that in mind as we look at nightly charts each day.
Crude finally stopped rising and fell $1.06 to close at $62.66. Yesterdays crude rally was off the perception that supply had fallen after seeing the inventory data. But after digging through and digesting the information it was found that supply was just curbed due to the delays in delivery from weather in Texas. So really nothing has changed and supply is fine, taking the pressure off. Gold also down today to close off $3.20 at $621.10 on the day.
Friday we can look for the economic data to set the tone and
once released I would expect a very quiet market. The Semiconductors (SOX) broke the 50dma today and tomorrow we’ll see if that is confirmed with a lower close. It is now sitting on the 200dma. The Nas 100 is also sitting right at the swing low and 50dma, which we talked about Monday night as being critical to hold. The Nas composite and S&P 500 have a bit more room before hitting any big support levels. Banks again today closed with another new high, I am still seeing some divergences set up there. With today’s economic data there is talk of a rate cut to avoid a hard landing, so that did help to fuel the banks some today.
I will look for some upside unless the data is off and weakens the market, then we won’t hesitate to short. But for now given the close we had Thursday my bias is some upside. But a narrow range and quiet volume should also be the tone of the day once the morning volatility dries up. Even plan on starting your holiday weekend early. I hope everyone enjoys their weekend and Christmas with their families. We have much to be thankful for at tradewithlogic.com and I wish you all a wonderful holiday. Friday expect small moves and into Tuesday a quiet market. Next week is a shortened week followed by another short week with New years lingering over us. So get use to some quiet time and slower market conditions. However, there has been some nice setups, just requires waiting for it each day.
Economic data for the week of December 18th—22nd
Friday 08:30 Durable Orders, 08:30 Personal Income, 08:30 Personal Spending, 10:00 Mich Sentiment Rev.
Some earnings due out this week: Friday nothing of interest.
ES (S&P 500 e-mini) Friday’s pivot is 1431.75, the weekly is 1433.50. Intra day Support: 1428.25, 1426.50, 1422.75, 1420.50, 1416.25. Resistance: 1432, 1434.50, 1437.50, 1440.50, 1442.50, 1444. 60 minute chart is below.
ER (Russell 2000 e-mini) Friday’s pivot is 791, the weekly is 799.10. Intra day Support: 787.10, 785.70, 784.40, 782.8,and 781.10. Resistance: 790.20, 791.50, 792.7, 794.50, 796.80. 60 minute chart is below
SOX (Semiconductors) closed —6.38 at 466.50. Support: 463.60 200dma, 456.99, 451.77. Resistance: 469.50 50dma, 475.39, 478.80. Daily chart below the dark blue is 200dma
Happy Holidays to all!
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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