Friday, November 23rd Recap
Today was a much expected low volume day, however the SPYs caught a few people off guard with its 1.3% day. After this week I think it is safe to say that we have entered in to bullish tape. That being said, I do think that the SPYs are pretty extended (closing at 141.35). I anticipate a day or two pull-in next week, so don't head for the hills just yet bulls. We are currently about a point and a half above the 21-day, and I think a few days of consolidation/retracement here is good for the bulls long-term. If we lose the 8-day and 21-day, the 200-day is down to 136.87. The biggest thing I will be looking for is the 8-day crossing up into the 21-day and maintaining that uptrend.
One of the best things I saw today was the action in GLD and SLV indexes, as well as the QQQ's. GLD ended up 1.2% on the day, while SLV was up over 2%. On better than expected volume for both, it's great to see the bulls take care of any doubt the market may have had. GLD had been lagging SLV as of late, but today's action is very bullish and very good to see for longer term trends. Additionally, the QQQ's have finally broke the accelerated downtrend from September. Breaking this resistance was one of the biggest obstacles we faced once the trend changed, and it is very good to see such a powerful move.
Overall this week was finally the week the bulls were looking for. Last Friday's reversal day did prove to be the trend changer we'd hoped for. Going into next week I would suggest waiting for pullbacks to either initiate new longs or add to old positions. The majority of our charts are showing that the 8-day moving average is still lower than the 21-day. One thing to look for in the coming days is a cross of the two averages. At this point it is very tactical to trade against these averages. If we can't hold these averages early next week, I would be very weary. Even though this does not seem to be the case, be prepared for both scenarios.
Hope everyone had a great trading week, as always check back later this weekend for more analysis!
The ET Team
One of the best things I saw today was the action in GLD and SLV indexes, as well as the QQQ's. GLD ended up 1.2% on the day, while SLV was up over 2%. On better than expected volume for both, it's great to see the bulls take care of any doubt the market may have had. GLD had been lagging SLV as of late, but today's action is very bullish and very good to see for longer term trends. Additionally, the QQQ's have finally broke the accelerated downtrend from September. Breaking this resistance was one of the biggest obstacles we faced once the trend changed, and it is very good to see such a powerful move.
Overall this week was finally the week the bulls were looking for. Last Friday's reversal day did prove to be the trend changer we'd hoped for. Going into next week I would suggest waiting for pullbacks to either initiate new longs or add to old positions. The majority of our charts are showing that the 8-day moving average is still lower than the 21-day. One thing to look for in the coming days is a cross of the two averages. At this point it is very tactical to trade against these averages. If we can't hold these averages early next week, I would be very weary. Even though this does not seem to be the case, be prepared for both scenarios.
Hope everyone had a great trading week, as always check back later this weekend for more analysis!
The ET Team