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One would expect a light volume holiday trading week, but so far many of the charts that I looked at have normal or average volume. Maybe it will lighten up each day, but let's take a look at what trading took place after the weekend report.
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SPX - The markets have been choppy and instead of that inverse H&S pattern breaking back above the 200 sma again, Monday the Markets dropped.
I used this chart in the weekend report along with the increasingly ugly charts of FB, GOOG, NVDA, and even the IWMs lack of strength, to show the current weakness. I warned again that if we don't see strength soon, we may see an a-b-c drop that looks like this on the General Markets Weekly Charts.
Read MoreAs time moves forward, we begin to see the moves that we anticipated in various sectors, as they begin rising out of the recent lows. Let's get updated on our Big Picture expectations...
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SPX WEEKLY #1 - We see that price has moved to resistance, please read the chart.
Read MoreJust a reminder : Today is the last trading day of the week, and next week will be a holiday shortened trading week in the U.S., so let's see where the markets stand and enjoy our Friday of trading!
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Note: we'll see how 'earnings' affect the markets going forward, but NVDA released earnings after the bell, and got crushed, down over $33 or 16%. We will discuss that with the NASDAQ too.
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SPX - Wednesday we had a gap fill and a bounce into the close. We need a bigger sign of strength than that, so we'd see if Thursdays trading could show some strength...
SPX - Markets sold off to a new low on Thursday morning, and then put in a nice reversal. It overtook more than 1/2 of the prior days candle, so you could add to positions on a day like that, with a tight stop at the lows. Our inverse H&S remains in tact, let's see if this can power higher.
Read MoreLet's take a look at the Markets, and I will discuss the Theme Picture later in the report. Consider the last part of this report as important, and please read it carefully.
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DJIA - We have a gap fill. Now let's see if these markets can get moving to the upside. I have discussed my thoughts on the General Markets in recent reports.
Read MoreIt certainly looks as though Oil has entered the capitulation phase of a sell off into an ICL, and a low is very near. I want to discuss that as a future buy opportunity in this report, but first we'll do a market review. Just to reiterate: In just about every sector, Trading remains very choppy. That can be a bit frustrating or even a bit damaging if position size isn't kept small, stops aren't honored, etc. The sidelines are not a bad place to be until the dust settles a bit.
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SPX - Rejected at the 50 sma on a bounce, so far this peaked on day 7. We now have a possible inverse H&S, but the open gap below could draw price in for a gap fill.
Read MoreThe Stock Market involves real money, so it's by no means considered just a 'game', but similar to many games, we have a few choices when we take a position(s). If, over time, we find that things are getting a little rough ( the markets may get choppy for example, or players may get banged up), we still have choices.
3 basic choices are:
1. We can exit the playing field (sell) and head for the sidelines to avoid all of the choppiness.
2. We can stay in the play until we get 'stopped out' or are rewarded with a move higher
3. Just wait on the sidelines and see how the game plays out for a bit as a spectator, and look for a better time to enter
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Read MoreIt is the Last day of the week and the Elections have passed, the somewhat non-event of the FOMC Meeting has passed, so now let's just take a look at what we have going on...
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SPX - We had a slight pause on day 8, so I have just drawn in a possible dip to an inverse H&S at the 10 sma as support. This is just hypothetical.
However here is another reason that I think we may see a drop in the General Markets....
Read MoreAs mentioned yesterday, Markets do not like uncertainty, but with elections out of the way, we could get a Post Election Pop. As you can see, we got that Pop. Today is an FOMC Meeting, and there were a few other areas of interest that continued to set up for higher price too. Let's take a look...
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SPX - On day 7, we can expect markets to hold up above the swing low from here, but I'm still wondering if they can recover fully, or will things remain a bit choppy again going forward?
This is what I am looking at...
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It has been difficult trading or investing for the Buy & Hold group. October was a drop into our ICL , and it was a deep one. Since then, we have seen a lot of choppiness heading into the U.S. Elections. Markets do hate uncertainty. Now that that will be behind us, we still have an FOMC Mtg scheduled for Wednesday & Thursday of this week, so unless we get a strong reaction higher when the results of the elections are released, maybe we should just expect a bit more choppiness . Let's review our market sectors...
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SPX - After an A-B-C type sell off , this looks like an ICL is in place and we are on day 6. Resistance is right above, so the elections results could push price through. Markets do not do well in uncertain times, so the post election results could help the markets.
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