Morning Commentary for Monday, November 22, 2010

by Steven Chanin on November 22, 2010

Good Morning SOM traders…After expiration last week we are in now a holiday week with the US markets closed on Thursday and open for a ½ day on Friday. Looking forward…here are this week’s economic announcements that could move the markets (all announcements are pre-market, 8:30am, unless indicated and all times are EST) – Tuesday: GDP, Existing Home Sales (10:00am) Wednesday: Durable Goods, Personal Income, Friday: Black Friday Sales. While Black Friday is not a scheduled announcement, the sales results, along with online weekend sales, will be reported over the weekend and could easily move the markets strongly in either direction BMO on Monday. You may want to review your income positions and take any additional steps during the ½ day session on Friday as a precaution. Overnight the Asian markets were mixed and at the time of this writing Europe is down and US index futures are slightly lower indicating a slightly lower opening today.

Technicals…Last week we opened with 2 days of selling that never got down to the 50 EMAs before the bulls came in and filled the gap over the following 3 days. On Thursday and Friday all of the indexes hovered around their 20 Day EMAs while the RUT bounced perfectly off it on both days. Here is what I see for technical support/resistance (all MAs are 6 month Exponential):
DJI: support $11,170 (20 EMA) resistance $11,450 (prior swing high)
SPX: support: $1,194 (20 EMA) resistance $1220 (prior swing high)
NDX: support $2,128 (20 EMA), resistance $2,197 (prior swing high)
RUT: support $715 (20 EMA), resistance $742 (prior swing high)

For those of you in the US, have a Happy Thanksgiving!

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