Lackluster Day, Waiting for Buy Pattern to Setup on Daily Charts
Today the markets were up very small. The DOW was up 1.20 and the NASDAQ was up 13.33. It was a very quiet day, typical for the day before thanksgiving.
I am looking for the market to pullback here and make a series of higher lows into the end of the year. I am waiting for the pattern to setup on the daily charts. Last week I got a buy signal on the exchange traded fund SPY when it closed above 209.01. I am now waiting for the markets to pull in.
The DOW got down to 17683 yesterday. I stated I was looking for a pullback into the 17450-17650 range. I do not think the pattern is complete. I am looking for the market to pull in sometime next week before pushing back up and creating a series of higher lows into the end of the year.
Today oil had a slightly bullish inventory number. Oil was down at one point today before erasing the losses and closing up 21 cents, above the $43 a barrel level. There is a lot of overhead resistance and I have a sell signal on both the daily and weekly charts for oil. I would be looking to sell oil off of an overbought condition on the daily chart in the 44.50-46.50 range with a 50 stop.
Today gold was down $3.50. I am hoping for a bounce up into the 1090-1100 range where I would possibly look to go short. Gold is not doing much here and is dead money. I do not see anything happening in gold between now and the end of the year.