Daily Commentary: November 21, 2024

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Market Support Is Forming – Buy

Posted by Pete Stolcers on November 21
www.oneoption.com

The breakout from a few weeks ago has been tested and now the market is ready to head higher.

PRE-OPEN MARKET COMMENTS THURSDAY – Let’s keep this short and sweet. I am bullish into year end. The fundamentals and the technicals are in agreement and we have seasonal strength favoring a year end rally. We’ve seen a bit of volatility in the last couple of weeks and the market got ahead of itself.

Earnings have been strong and NVDA posted a solid number overnight. Economic releases have been solid. Philly Fed was a little weak (-5.5), but jobless claims were good (213K). The Fed is fairly dovish and they have room to ease if needed. The calendar is light and next week we’ll head into holiday mode. There is nothing to spoil this rally and that favors the current trend. Asset Managers like to mark stocks up into year end. They will not chase, but they will buy dips. WE HAVE A DIP AND YOU SHOULD BE BUYING.

This morning the SPY is going to move into the gap from last Friday. I believe we will keep filling it.

Swing traders add to positions. This will be the third one. If you like selling bullish put spreads, put some on today. The train is about to leave the station and this will be one of your last good opportunities this year. From here in, I believe the market will float higher on light volume. It will be hard to add to longs in that environment because the move will not feel strong. Do it now and plan to ride the float higher.

Day traders will not get much of an opportunity to wait this morning. Your alerts will be going off. Ease in early and look to add during the day. Support is the high from Tuesday ($591) and I believe that support will hold. We’ve tested the breakout at $586 a few times this week and we are making higher lows each time we test it. That is bullish and that is what Asset Managers will be leaning on.

Support is at $591 and resistance is at $600.

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