Dec 11
21
Morning Brief of Major Indices ES NQ DJI VIX SPY
The momentum continues to shift from bullish to bearish, but without a true market leader and definitive trend. With only about a week remaining in the year I think that we could continue to see the bulls and the bears fight it out with low volume and high volatility. As of right now the bulls have momentum and are closer to taking control of this trade. The Dow is the strongest market because they are above……. all of their major moving averages and are comfortably in positive territory for the year. I think that as long as the Dow can sustain trade above their 200 day moving average the bulls will try to pull the rest of the Indices higher. The Nasdaq was the strongest market over the past few months but they are now struggling to get back above their 200 day and 50 day moving averages. I think that in order for the bulls to continue this momentum the Nasdaq has to get back above those moving averages. If the Nasdaq cannot get back above these moving averages I think that this rally could stall or even falter. The Transports are in striking distance of their 200 day moving average and violation of their 200 day moving average could add a spark to the market. The S&P busted through their 150 day smooth and 50 day moving averages yesterday. This area has been resistance over the past week but the bulls managed to push through it. I think that as long as the S&P cash can sustain trade above these moving averages the bulls will have a good chance of continuing this momentum. Today I will be initially looking to buy breaks leaning on 150 day smooth and 50 day moving averages. I will be looking for the market to test the HVB and fill in the Gap, then a possible a test of resistance at 1240.75 where I will be a seller. If we cannot sustain trade above the 150 day smooth and 50 day moving averages I will turn seller and look for a test of the daily pivot and possibly the single ticks from 1223.75 – 1218.00 to be filled in. I think that we will continue to see light volume and high volatility so I will be keeping it on the light side. Have a great day!
Written by Anthony Crudele
