The market is still overbought

Friday closed with mixed results and light volume on the NYSE and Nasdaq.
The Nasdaq 100 and Nasdaq Composite closed red, while the S&P 500 and Dow closed green. All four broader indexes had narrow ranges, which was expected on for November Options expiration. This closed the week out green and at multi year highs on the broader markets, all time high on the Dow.

Crude closed the December contract on Friday down 45 cents to close at $55.81. January is now the front month for oil and closed up 40 cents at $58.97. Big spread between the two and that could make for some very volatile conditions on Monday’s early session. Gold closed up 80 cents at $622.50, which was a huge move off the earlier lows at $614.50. Rumors of some hedge fund’s being in trouble with gold and the US dollar helped the volatility. Also some Chinese fears about exiting the US dollar is fueling that market.

Going into Monday we are still overbought, but the 60 minute left some signs of further upside. So to respect that let’s look for up early and then a pullback as the first half hour and hour close. The conditions we sit in is very difficult to find momentum, so keep in mind pre holiday we could be slow motion and trading light is not a bad thing.

Some earnings of Interest for the week: Monday pre market — CPB, LOW and after the bell MDT, GHCI, JWN. Tuesday pre market — DE, DLTR, FRED, GME, JBX, MESA, UNFI and after the bell — BGP, BRCD, CWTR, PSS. 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:
Monday 10:00 Leading Indicators, 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) Monday’s pivot is 1402.75, weekly pivot is 1398.5 Friday gapped down into the measured move support for the head and shoulders (that I gave a chart for Friday). Then bounced back off that weak open to close just off the highs on the day. Very narrow range, I would think Monday we look for early strength to test last weeks highs (1408) and then a pullback. Be watchful of light volume and we’ll attempt to avoid the chop. Intra day Support: 1403.75, 1401.50, 1399.50, 1397 and 1393.75. Resistance: 1405.75, 1408, 1411 and 1413.75. 60 minute chart is below.

Compx (Nasdaq composite) closed -3.20 at 2445.86. Support: 2437.74, 2416.85, 2407.82. Resistance: 2455.11, 2468.59, 2474.10, 2507.34.

Good trading to everyone this week.

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
futures traders,

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