Good Morning Traders!
Veteran’s Day was a light volume day with narrow ranges in stock indexes and bonds. Sugar and Beans made up for the lack of action though.
EC, CD GC and Bonds have three bar breakout coils that can lead to better trend moves on Wednesday.
The SPs have a rising wedge formation on the intraday charts. These low volatility points can breakout in either direction but the stock market is overbought on several counts. The RSI on the Dow has been above 82 for 3 days. Put call ratios have remained on the high side so overall downside might be limited. 2028 is the middle of the trading range from 2-3 days ago, and is also the bottom of a rising channel on the 120 minute chart. Broad support comes in in the 2010 – 2014 area. A close below 2030.50 would be the first close below the daily 5 SMA in 18 trading days. The chart at the top shows the updated action from the overnight session.
As always, with an opening gap down, watch the previous day’s low of 2031 as first pivot to the upside. All indexes had NR7 days on Tuesday.