Monday structure in the S&P 500 implies a sideways the higher movement for Tuesday's activity.
Can buyers follow through in the S&P 500 on Monday. That is the question that's left after Friday's shortened session. New home sales may give some insights in terms of the momentum to the upside in the S&P 500.
The shortened trading session for Thursday, Thanksgiving day is expected to be a balanced sideways move unless fundamentals give the market excuse for volatility.
In the S&P 500 be cautious on the long side because of the structure created on Tuesday. This type of structure has the potential to turn over and break lower. However, during this holiday week it's hard to imagine that sellers would want to stay short going into the holiday.
Modest follow through to the upside in the S&P 500 is expected for Tuesdays market action. As the week unfolds there could be a holiday market attitude with higher closes expected.
The S&P 500 on Friday provided a quiet close in a neutral zone structure. The bias for the S&P 500 is to the upside. With the fundamentals available next week there will be excuses for this market to provide volatility. It will be interesting to see if buyers can maintain the momentum from earlier this past week.
The current structure in the S&P 500 is a neutral zone trade with a bullish bias. This means the expected behavior for Friday's close would be positive.
The daily range of the S&P 500 on Wednesday implies a market catching its breath. It also provided a weak close. This structure would imply a down day for Thursday. However, the expectation is for a sideways market.
The large move in the S&P 500 on Tuesday based on inflation data exemplified enthusiasm for the decreasing inflation and anticipation of further positive data to support the Fed leaving interest rates alone.
Monday's price action in the S&P 500 is a neutral price structure as the market prepares for the CPI data announcement on Tuesday. The overall environment is neutral and the bias is still for moved to higher levels.
If buyers were going to return to the S&P 500, Friday's price action was a step in the right direction. Although not a very strong move, the closing level implied sellers buying to take profits and buyers returning to the market. Ideally on Monday a close above 4440 would continue this momentum.
Is the down move in the S&P 500 on Thursday a sustainable move to lower levels? The move down was primarily due to comments made by the Fed regarding the possibility of a future increase in interest rates. I am not looking for another large move to the downside unless we get new fundamentals to increase the uncertainty in the S&P 500.
The price structure in the S&P 500 over the last 3 days represents a market moving higher but on smaller ranges as it grinds out a new high. This means we need to be careful at these higher highs of a possibility for a move to the downside.
Can buyers maintain this upward momentum in the S&P 500. One concern is were seen a a potential loss of momentum with the smaller range candles as this market moves higher. If buyers are here would like to see a close above 4440 by the close of Thursday.
Although Monday's range in the S&P 500 was fairly small because there were no major fundamental drivers for that market. However, be cautious if you're on the long side. This can be a loss of momentum set up that can easily turn down.
Friday's close in the S&P 500 indicates that buyers are continuing to support this market going into the weekend. It indicates that no one was selling to take profits or it did not get high enough to find new sellers coming into the market. This does imply continuation of the trend. However, to see arrest day on Monday would not be surprising. The next level to...
Friday will be a barometer of the market attitude going into the weekend for the S&P 500. The insight into this attitude rest with the buyers and their ability to create and hold a higher close on Friday.