• Market Commentary: DJIA ($INDU), S&P 500 ($SPX), NASDAQ ($COMP)
• Where Are We Now?
• 1987?
• This Week’s Economic & Earnings Reports
U.S. FUTURES (as of 6:50AM EST): DJIA (+2.13%), SPX (+2.47%), COMP (+2.46%)
MARKET COMMENTARY – INDU 8,943.81, SPX 930.99, COMP 1,647.40
The market is either in a triangle or a range. It appears that the gap up this morning will bring the market above its 20-day MA on all indices. We will be testing this level today but it is likely that we will pass it following in Asian and European markets. If we form a doji or if we “stall” today, then that will be warning sign that the rally will be short lived. In either case, today is a reminder that anything can and will happen over the week and one must be prepared for such uncertainty.
WHERE ARE WE NOW?
It’s still amazing how fast and how far we’ve fallen. For the long-term, we have to map out potential support areas to anticipate a major bounce. Therefore, looking at 10 and 20 year charts for the INDU, COMP, and SPX, here’s where we are now:
1987?
Notice the deep consolidation and how similar the market is in its current stage. Even the triangles are similar.
THIS WEEK’S WATCH:
• If the market’s reaction to the Chinese stimulus holds. End of day volume to confirm the rally’s effectiveness.
• The end of the week’s economic reports. We do not have any noteworthy today or tomorrow. Friday will be the most important day for economic reports.
• A breakout or breakdown is imminent. Once it does occur, be prepared to trade in the prevailing direction of the market.
Noteworthy Economic Reports: Mon. (none), Tues. (None – Veteran’s Day, Markets Open), Wed. (MBA Mortgage Applications – 7:00AM, ICSC-Goldman Store Sales – 7:45AM), Thurs. (International Trade – 8:30AM, Jobless Claims – 8:30AM), Fri. (Imports/Exports – 8:30AM, Retail Sales – 8:30AM, Inventories – 10:00AM, Consumer Sentiment – 10:00AM)
Noteworthy Earnings Reports (planned): You can find at the complete list here: http://www.rightline.net/calendar/index.html.
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