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Today's Trackdown: Thursday - Nov. 8, 2018

  • Brief Recap and Updates on the Markets
  • SPY Charts and some Technical Analysis

In Wednesday's action:

Stocks ended MUCH higher Wednesday, following the closely watched midterm elections that saw Democrats take control of the House and Republicans retain their hold on the Senate.

News to keep in mind Thursday morning:

  • Markets are lower in pre-market trading - After a huge run yesterday, maybe some consolidation and rest maybe needed.
  • At 9:15am ET - Dow futures vs fair value: -20.00. S&P futures vs fair value: -7.25. Nasdaq futures vs fair value: -31.00. Russell 2000 futures vs fair value: -5.25.
  • Keep an eye out for any trade headlines or political risks
  • Keep an eye on the VIX - it is currently unchanged after yesterday's big drop

Today's Economic Calendar:

8:30 Initial Jobless Claims
10:30 EIA Natural Gas Inventory
2:00 PM FOMC Announcement
4:30 PM Money Supply
4:30 PM Fed Balance Sheet

The SPY charts are pictured below. The first is a 4-month chart followed by a longer-term 9-month chart.

The markets were much higher on Wednesday. Glad that the election is over and we can move on now. The MACD lines are now heading up. The Stochastics are high and at overbought. The Money Flow is now a positive.

I have 270 as the support level and 280 as the resistance. We are a bit above 280, the next resistance I see would be at the 50-day moving average. The money flow has improved, which is a good sign to me. The MACD has bottomed and is turning up. We are back above the 200-day moving average! We still may have some weakness to deal with some days, but I believe the correction is over and the bottom is in. The technicals have really improved over the last few days.

On the 9-month chart, the nice channel since April has been shown. This trend/pattern was broken to the downside. Awaiting the emergence of the next pattern. The 270 line is strong support now. Possible resistance maybe at 280.

Nasdaq Composite +9.7% YTD
Dow Jones Industrial Average +5.9% YTD
S&P 500 +5.3% YTD
Russell 2000 +3.0% YTD

Disclosure: I may trade in the ticker symbols mentioned, both long or short. My articles represent my personal opinion and analysis and should not be taken as investment advice. Readers should do their own research before making decisions to buy or sell securities. Trading and investing include risks, including loss of principal.

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