Daily Commentary: November 20, 2024

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Buy This Dip

Posted by Pete Stolcers on November 20
www.oneoption.com

The market tested the breakout from the October 17th high twice and we saw a big bounce yesterday.

PRE-OPEN MARKET COMMENTS WEDNESDAY – The market got a little ahead of itself after the election rally and we’ve seen a normal round of profit taking. The breakout has been tested twice and the gap down from November 15th will be filled.

The big news this week is NVDA earnings after the close today. It will impact the tech sector. The stock has been compressing for the last month so the bid should be building. I believe that the stock will hold up well and odds favor a move higher.

The calendar is very light and we are going to go into holiday mode next week. Asset Managers won’t chase, but they will buy dips. This could be the only opportunity to add to swings into year end. Once we start to rally off of this support level, the move higher will be choppy and it will come on light volume. Yes, I would be adding to swing longs. This is the second add to the starter long two months ago.

We have a flat open this morning. Any bid check will be a gift in my opinion. They will test the gains from yesterday and I am expecting early support. Have your stocks ready to go. No need to go nuts, just know that you are looking for early opportunities to get long in the absence of any long red M5 SPY candles. Overseas markets were mixed so there is not much of an influence there.

Support is at $590.50 and resistance is at $594.40.

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