The S&P wasn't so lucky as it struggled to bounce off its double bottom. Black candlesticks are rarely good to see, and with a distinct lack of support below it could prove problematic after Thanksgiving. Technicals are all bearish, including a bearish swing in relative performance to the Russell 2000. There are three tiers of support drawn and the index has - so far - defended the second level. On a more positive note, the index dropped into the 15% zone of historic weak action, marking it as an accumulate for investors.
The Nasdaq is struggling more than the S&P and while it remains in the accumulate zone for investors, it just missed out Tuesday from entering the 10% zone of historic weak action. Technicals have nothing to offer bulls, each showing marked accelerations lower. While investors should be dabbling here there is a good chance things could get worse here.
The Dow Industrial Average is resting on a support zone, offering another 'buy' opportunity. There is no 'black' candlestick but watch for a gap down - although Thanksgiving Friday is typically a feelgood mini-rally - it may be Monday or Tuesday before the market's true intentions are shown.
For Frdiay, look for a small rally to keep the junior trader's happy but it may be Monday or Tuesday until we know how strong of a new swing low markets created today. Traders will have had one stop out from last Thursday, will today be another?
You've now read my opinion, next read Douglas' blog.
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