Daily Commentary: December 03, 2024

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Here’s Why the Market Will Float Higher

Posted by Pete Stolcers on December 03
www.oneoption.com

No one is selling and the backdrop is stable.

PRE-OPEN MARKET COMMENTS TUESDAY – The market rallied to a new all-time high after the election and it tested the breakout. Support was confirmed and now we are making another high. This gradual drift higher is likely to continue the rest of the week. I view this move as more of a “sellers boycott”.

Economic growth is solid and the numbers this week will bear that out. ISM Manufacturing was better than expected yesterday (48.4). JOLTs will be released today after the open. Tomorrow ADP and ISM Services (56.0 reading last month was strong). Friday we’ll get the Jobs Report (200K expected). The storms and strikes are over and weekly initial jobless claims have been low (215K). There’s plenty of “Fed speak” this week as well. If the economic numbers are soft, they have the latitude to ease.

We are in a period of seasonal strength and there’s no reason for Asset Managers to sell. Even a small bid can drive prices higher if there are no sellers.

After this week, the market will have advanced a little higher and we are likely to see a small round of profit taking. Once support is established, we will float higher into year end. That’s how I see things playing out.

Longer-term swing traders, stay the course. Short-term swing traders should have one more push higher this week.

Day traders need to find really strong stocks with extreme volume. The market won’t help or hinder and the stock will have to do all of the work. Breakouts through major D1 technical resistance levels will fuel the move so search for them. Make sure the stock has “escape velocity” and that it has easily cleared that resistance. I am expecting another dull day. This is going to be a flat open and overseas markets were up slightly.

Minor support is at $602.50 and resistance is at $605.30

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