This Market – Hot And Cold

This week various sectors actually made some moves that could affect the short and longer term outlook. Lets dig right in and review what has happened. 

SPX - Expecting a pullback with resistance at former highs, this is wedge was posted and a possible channel could form. 

SPX 11-9

SPX - The channel has been broken, but thats not bearish by itself yet.  The SPX tagged the 38% retrace.  We could even fall further this week to the purple dotted trend line for a back test. This is also the 50% retrace and the 50sma is there, so good support could be found just below current price.  I do expect a bounce soon.

SPX 11-13 daily 2

This is not bearish at this point, but let me show you something a little more concerning here...

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Examining The Evidence

As I begin writing this report, it looks like OIL may be ready to bounce here.  I wanted to take this time to examine the evidence and discuss my recent expectations in the Oil markets.

WTIC - Nov 11 this was our picture of OIL.  Please note the $42.58 .  Oil was not acting the way that it should early in a 2nd daily cycle and the high volume selling was noteworthy. 

WTIC 11-11

Now lets take a closer look on Nov 12 and discuss the implications.

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Oil And More

I wanted to discuss OIL a little later in this report this morning, since it is acting a little weaker than expected. We'll start with our market review.

We expected a small pull back in the markets, and this chart showed where the Fib #'s would be.  There was also a channel included.

SPX 11-10

We have reached that lower  channel line and the 20sma.  That could act as support, but the above chart also has the 38% Fib # at 2022 and we also see the 50sma and the purple break out in that area.  That means the selling may not be over yet.  

SPX 11-11 Read More