Daily Commentary: November 22, 2024

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Posted by Pete Stolcers on November 22
www.oneoption.com

The market tested the breakout and it bounced. Rally coming.

PRE-OPEN MARKET COMMENTS FRIDAY – The market has been in a long-term up trend. You know from my market comments this week that I am bullish. The technicals and fundamentals agree. The market got a little ahead of itself after the election and the rate cut and we saw a light round of profit taking. The breakout was tested and we have been making higher lows. The gap from last Friday has been filled and we have seen a series of dips along the way. This is not a strong powerful move and we can expect more “bid checks” as we grind back to the all-time high. The news is light next week and the action will be light as we prepare for a holiday. This back drop favors the current trend.

This is a flat open and overseas markets were up slightly with the exception of China (fairly weak).

You should have added to longer-term bullish swings yesterday. If you missed that opportunity, you can add today. We had a starter long from over a month ago and two adds. I like selling OTM bullish put spreads here with a December expiration.

Day traders should welcome any early weakness. Let the dip find support and be ready to buy. I believe this is going to be a relatively slow day so keep that in mind.

Support is at the low from yesterday and resistance is at the all-time high.

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