December 6th – Thursdays Trading

Well, it has only been 1 trading day since my last Tuesday morning report, what has changed since then?  The Theme Picture of this report is a hint. Wow!

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Review for those that need it:   The markets have been very volatile lately.  Since the Sell off in the month of October to a trade-able Low, the trading has been very choppy ( as expected).  As of last week, we had a 'Powell Pop' 5 trading days ago, and then price moved to the 50 & 200 sma as we approached the 'G20 Weekend Meeting'.  The daily cycle was  getting old at day 23, and that 50 & 200 could be strong resistance, so what would happen after that G20 Meeting?  Well,  Monday had another Gap open higher, right above both the 50 & 200 sma, but it closed in a doji candle with a gap under it.  That looked very strong & convincing for this daily cycle, but I did note that the Doji could indicate a dip down to close that gap.   A stop under the 10sma was advised.    Well, from there, we can discuss Tuesdays trading,  a day that actually saw the Dow lose 800 Points!

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Tuesday Dec 4th

As a reminder: The stock market is closed on Wednesday.   Most were buying or adding to positions Minday, based on previous reports and the discussion in the comments section.  Let's  take a look at what happened during Mondays trading...

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Dec 1st weekend Report

Is it a Trade War that will continue as time moves forward, or will there be an agreement of terms that both sides can live with? All eyes seem to be on the  G20 meeting this weekend for the answer to that question, since it already seems to be having implications on how these markets trade going forward.   Just like any war, trade wars often have casualties along the way, and these markets have been very choppy lately.

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EDIT:  This just in...  (Bloomberg) -- Stock markets will close Wednesday for a national day of mourning to honor former President George H.W. Bush.

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Let's review the various Market Sectors to look at The Big Picture and see how they traded this past week...

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SPX - This is what I was watching for,  and then a break to a lower low to the ICL,  or if the ICL is in place from October, a higher low may happen on the next drop.

#1 - Nov 27 I drew this -   A run to the 50sma/ 200 sma, and a possible drop to a lower low.

#2 Or was an OCT ICL is in place?  A break higher after the  G20 meeting results, and then a drop to a higher low.   EITHER WAY,  these markets can remain choppy & difficult. 

 

We are here now

 

SPX - I expected the bounce to this area, and then we need to watch price action at the resistance.  It just happens to fall at the timing for the G20 meeting.

 

Lets continue...

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