While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to six-month time frame, Mad Day Trader, provided by Bill Davis, will exploit money-making opportunities over a brief ten minute to three day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points.
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The month of November closed out with another bullish close. For the month, the S & P 500 closed up 52 points, to close at 2,642.22.
This was the eighth consecutive higher bullish close.
Usually, a market will pullback after it closes in the same direction for 8 to 10 price bars. If the run goes 10 bars, that would mean a pullback would be due in January 2018.
I know it seems strange for me to be mentioning a possible pullback, considering I have been imploring you not to consider shorting this market.
With a bullish close though, I would still expect support from the November monthly bar around 2,630.
Also, the upper extreme bollinger band for the monthly chart is now 2,482.66. With the S & P 500 trading about 140 points above that level, I would expect support at that level on a pullback.
Scaling down to the weekly chart, we also have another bullish weekly close. Support from last week's weekly price bar is in the 2,622 to 2,628 area.
The upper band on the weekly chart is 2,703.71. We need to be mindful of that price.
Pre open, the S & P 500 is trading about 16 points to the upside. Based on that activity, the S & P 500 should open around 2,658.
This would put the market above the next objective, which is 2,656.30.
Support should then be at 2,646.53.
I do need to mention that last week, the S & P 500 and the VIX diverged on a weekly basis.
Both closed to the upside.
Continue to follow the resistance levels.
Here are the Key Levels for the Markets:
$VIX:
Major level: 14.06
Minor level: 13.67
Minor level: 12.89
Major level: 12.50
Minor level: 12.11
Minor level: 11.33 **
Major level: 10.94 <
Minor level: 10.55
Minor level: 10.16
Major level: 9.38
Minor level: 8.99
Minor level: 8.20
Major level: 7.81
The VIX and the S & P diverged again. The VIX closed at 11.28, up .58 on the day, while the S & P 500 closed to upside as well.
A retest of 12.50 seems likely at this point. And I still expect resistance at that level.
$SPX:
Major level: 2,695.30
Minor level: 2,685.55
Minor level: 2,666.05
Major level: 2,656.30 <
Minor level: 2,646.53 **
Minor level: 2,626.98
Major level: 2,617.20
Minor level: 2,607.43
Minor level: 2,587.88
Major level: 2,578.10
The S & P 500 should open just above the 2,656.30 level. Clearing 2,656 would indicate that the market should retest that level again on a pullback.
The next level on the upside is 2,666.05. Two closes above that and the objective should be to 2,695.30.
Minor support should be at 2,636.70.
QQQ:
Major level: 162.50
Minor level: 160.94
Minor level: 157.81
Major level: 156.25 **
Minor level: 155.47
Minor level: 153.91 <
Major level: 153.13
Minor level: 152.35
Minor level: 150.78
Major level: 150.00
The QQQ closed at 154.49. Look for a retest of 156.25.
Minor support is at 153.91.
IWM:
Major level: 156.25
Minor level: 155.47
Minor level: 153.91
Major level: 153.13 **
Minor level: 152.35 <
Minor level: 150.78
Major level: 150.00
Minor level: 149.22
Minor level: 147.66
Major level: 146.88
The IWM closed at 153.02. The IWM is trading above the upper band on the daily chart. Overbought short term.
150.00 should be major support. And 152.34 is minor support.
TLT:
Major level: 128.13
Minor level: 127.35
Minor level: 125.78 **
Major level: 125.00 <
Minor level: 124.61
Minor level: 123.83
Major level: 123.44
Minor level: 123.05
The TLT closed at 126.55. The major 125 level should be support.
A close today above 125.78 and the TLT should test 128.13. Minor support is at 126.17.
GLD:
Minor level: 125.78
Major level: 125.00
Minor level: 124.22
Minor level: 122.66
Major level: 121.88 < <
Minor level: 121.10 ***
Minor level: 119.53
Major level: 118.75
The GLD closed at 121.59. I would expect resistance at 122.27 and an objective down to 118.
Minor resistance is at 122.66.
XLE:
Major level: 73.44
Minor level: 72.66
Minor level: 71.09
Major level: 70.31
Minor level: 69.92
Minor level: 69.14 **
Major level: 68.75 <
Minor level: 68.36
Minor level: 67.58
Major level: 67.19
The XLE closed at 69.68. A close today above 69.14 and the XLE should test 70.31. The XLE is within 75 cents of that objective.
71.88 could offer minor resistance. And minor support is at 68.75.
FXY:
Major level: 86.72
Minor level: 86.53
Minor level: 86.14
Major level: 85.94
Minor level: 85.75
Minor level: 85.36 ***
Major level: 85.16
Minor level: 84.96
Minor level: 84.55
Major level: 84.38
The FXY closed at 85.66. A close today above 85.36 and the FXY should test 85.94.
85.16 is a minor support level.
AAPL:
Major levels for Apple are 175, 171.88, 165.63, 162.50, 159.38, and 156.25.
Apple closed at 171.05. If Apple can take out 171.88, expect it to offer support.
Clearing 171.88 would indicate a move back to 175.
WATCH LIST:
Bullish Stocks: BA, HUM, MMM, BDX, ANTM, LLL, COST, URI, HON, CME, DE, MCK, CAT, CBOE
Bearish Stocks: TAP, WIX, OTEX, OFC, MDCO, AKR, CLI, ERJ, INN
Be sure to check earnings release dates.