Thanksgiving
This is a holiday shortened week that may see light trading volume as traders enjoy a day off Thursday. Friday is historically one of the lowest volume days of the year consistently. However, Black Friday as it is known for its discounts and heavy shopper traffic may give an indication of the spending for the upcoming holiday season. The market which is focused on the economy and strength of recovery will likely be watching as well.
The market is in a correction and pulled back to the 50 day moving average in most of the major indexes. As expected many stocks and indexes bounced off the 50 MA (typical in a strong uptrend) and have now recovered approximately half of the losses. For instance the SPY, an ETF which tracks the S & P 500 recorded a high of 122.95 on November 10. It declined rather quickly to a low of 117.59 then had an inside day last Wednesday and rallied the last part of the week to close at 120.29. Simple arithmetic shows us the decline was approximately 5.50 points and the rally since the low is right at 2.75 points. This means the market can keep rallying higher or at some point put in a lower high to set up another leg down.
Past performance not indicative of future results. Futures trading involves substantial financial risk. Please consult your personal financial advisor before using this information for your own trading purposes.
