The Tug of War Continues

  • November 30, 2006
  • Teresa Appleton

Thursday left a mixed close with very definitive volume.  Nasdaq 100, Nasdaq Composite and Dow closed red on the highest volume we’ve seen this week to leave distribution days.  The S&P 500 closed green by a hair and also on the highest volume we’ve seen this week.  The day left wicks and sticks, that means shadows out both sides of the bodies to leave spinning top candles.  It implies a pause and market with a lot of indecision.  Given the amount of volume we had today, you’d think someone would have won this tug of war, but that wasn’t the case at all.  Complete indecision with some bearish bias.

Crude closed up 67 cents at $63.13 on the day.  Still pushing up off the inventories from Wednesday.  Gold also rallied today up $11.40 at $646.90. 

November closed up across the broader indexes leaving the 4th up month on the Nasdaq and 5th for the S&P 500 and Dow. Friday we will look for a weaker opening and move down to test support.  The day could still be narrow and I would expect lighter volume.  November closing out brought in heavy volume, but first day of a new month and a Friday, there isn’t any reason to look for volume to pile in.  Economic data has been more negative than positive this week and tomorrow’s maybe no exception.  We’ve sold off and recovered each day and that pattern should be watched for on Friday.

Economic Data for the Week of November 27 — December 1:    Friday 00:00 Auto Sales, 00:00 Truck Sales, 10:00 Construction Spending, 10:00 ISM Index.

Some earnings for the week:  Friday pre market WMG. 

ES (S&P 500 e-mini) Friday’s  pivot is 1402.50, weekly pivot is 1404.50.  Closed with a big bearish engulfing pattern, so our bias will be lower out of the gate tomorrow.  Intra day  Support:  1399.75, 1397.75, 1394.50, 1391. and 1386.25.  Resistance:  1403.50, 1406.25, 1408.50, 1411.25.  60 minute chart is below.

NQ (Nas 100 e-mini) Friday’s pivot is 1794.50, weekly pivot is 1814.75.  Intra day Support: 1789.75, 1785.50, 1781, 1777.50, 1774.50.   Resistance:  1805.25, 1810.75, 1815.75 and 1821.50. 60 minute chart is below.

Everyone have a great trading day Friday and a wonderful weekend.