Just a short post here today Monday November 22nd.  The market made a terrific come back from the early selling after the open. The gap was again closed today just before the close of the session to the tick and the market closed the day strong and at the top of its daily range.

Their are still open gaps from three days ago that are still not closed, which is at S&P 1178. The 1180 area on a closing basis is still valid as far as key major support for the uptrend.

We now have three days of market pressure built up at the S&P 1200 area and that is significant. I had mentioned a few days back that 1200 area was key resistance and with the market stalling there for three days, that seems to have been validated. The market did back fill some important levels today which it had to do if it was going to make a case for a move back up, like in tomorrow session. It will have to clear the 1200 area which was again defined in today’s session.

A close above 1200 will be bullish for the market short term, maybe to a double top, but I don’t see a prolong rally in the face of so much optimism. That strong sentiment can linger for a while, but usually it builds stronger if a reaction move has not happened within a few days. So, being that this is Thanksgiving week, typically a bullish week for the market, we could be on the look out for strength above 1200. The old high was exactly where I had called the top and so far that is around S&P futures 1220

In yesterdays blog, I posted that 1193 was going to be some key support and should see some selling if broken. The major support is at 1180, but the 1193 area was going to produce a reaction and it happened perfectly today. The market broke that number and went lower, had a small pull back up and proceeded lower moves down to 1182,  just two points from the next level of support called, 1180.  So those were good numbers in my book and it was nice to see the market react as it did.

Currently at 11 pm Monday evening, the night session has taken the market down off of today’s comeback. The opening bell should show some good volume to it as it did today, but be wary if things slow up later on in the session. We need market volume and movement to make up a good market. Its hard to make money is a slow market, so try and trade with volume. I would do well to take that advise myself. Us West Coast traders have it a little harder than the East, but when their is a will their is a way.  I am still working on the will.

Good Trading to all and trade safe, Happy Thanks Giving  in advance,  Vince    P.S.   no trading for me with week.