Before the Open (Nov 12)

by admin on November 12, 2009
in Before the Open

Good morning. Happy Thursday.

The Asian/Pacific markets closed mixed with a bearish bias – there were no standout winners or losers.

Europe is currently trading the same – mixed with no 1% movers.

Futures here in the States suggest a gap down open for the cash market. This comes off yesterday’s push to a higher high and close in the bottom half of its range.

We entered this week without many very good set ups to play. The market had rallied 5 consecutive days, but the charts were a little messy. I needed them to reset before posting new set ups. Some progress has been made, but more work is needed.

Here’s the SPX daily. I don’t see support or resistance anywhere. We need two points to draw a line, and so far we only have one from mid October. Support may be down near 1040, but that’s far enough away to not talk about yet. I call it no-man’s land…and volume has been very light.

Here’s the weekly. One more pullback would help form a bull flag within an uptrend. The move from 900ish to 1100 would measure to 1300. Thin trading lies overhead…maybe there’s an air pocket up there that will cause a quick 50-100 point move.