Dec 11
16
Quadruple witching
The bulls and the bears continue to fight it out and at this moment there is still no winner. The Nasdaq futures remain in positive territory for the year and above their 150 day smooth moving average. The Nasdaq has been trying for months to lead the rest of the market higher but they have been unsuccessful. I think that as long as the Nasdaq can sustain….. trade in positive territory for the year and above their 150 day smooth moving average the bulls will continue to try and push the Nasdaq and the rest of the market higher. The Dow remains strongly in positive territory for the year and is poised to open back above their 200 day moving average. That would put the Dow above all of their major moving averages and that is bullish action. The Dow is currently the strongest market and if they can sustain trade above their 200 day moving average I think that we could see the rest of the market add to their overnight gains. Yesterday the S&P cash failed at a test of their 150 day smooth and 50 day moving averages. This morning they are poised to open near them. If the cash can push through these moving averages and sustain trade above them, I think that we could see a nice rally today. The Transports closed back above their 150 day smooth moving average and their 50 day moving average. That is bullish action and as long as they can sustain trade above these moving averages I think that will give the bulls the advantage. Today I will be initially looking to buy breaks down to the daily pivot at 1214.25 and I will be looking for a test of support at 1226.25 where I will be a seller. If we cannot sustain trade below resistance at 1226.25 I will turn buyer and then be looking for a test of resistance above at 1238.00 where I will be an aggressive seller. Failure to sustain trade above the daily pivot at 1214.25 I will turn seller and then be looking for the market to fill in the Gap and then look to possibly test support below at 1202.50 where I will be a buyer. Today is quadruple witching so I expect another choppy day. Have a great weekend!
Written by Anthony Crudele
