Exposing Ideas to the Envelope of Serendipity

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Friday, November 6, 2009

Chart Watch for Friday

Trades for November 6, 2009

moo's /ES Range Estimate for All Sessions

( 1005 - 1030 - 1045 - ( 1054 ) - 1071 - 1080 - 1105)
(subject to change after evening session

Brinkley's Market Commentary

Thursday's market rally was extremely impressive in terms of price, with the Nasdaq posting its highest percentage move in months and closing back above its 50-day moving averages, the Dow climbing just over 200 points to reclaim 10,000, and the $SPX gaining nearly 2% and closing just below critical resistance. Volume was somewhat less impressive, however, dipping slightly on the session and casting a slight shadow on the otherwise bullish session. Still, advancers comfortably outpaced decliners, up/down volume was very positive, and new highs trounced new lows. Leading stocks outperformed, with BIDU and CME each adding nearly 10 points, and AMZN, GOOG, and ISRG each gaining over 8 points.

Better than expected economic data along with upbeat earnings from Cisco sparked the rally, but the focus will turn to Friday's much-watched employment numbers scheduled to hit the wires before the open. Technically, the $SPX is approaching a critical crossroads, with a short-term bullish setup due to collide with longer-term significant resistance just above here. The morning jobs data may provide the tipping point.

First up is a look at the recent $SPX action on a 30-minute, 15-day chart. A longer-term daily chart follows.

That's it for now. Trade well. -- Brinkley
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