On Wednesday the SPX closed at 3629.65 or -0.16% on a sector profile led to the downside by energy and moderately weak internals. This follows Tuesday's totally green sector profile on very strong internals.
Wednesday's premarket action saw NQ futures diverging from the pack into the cash open. That led to some movement into big tech with the NDX spending the day positive at the expense of SPX, DJIA and RUT. The indices saw moderate weakness on mildly negative NYSE internals. There was some profit taking as well, evidenced by the energy sector's pullback amid higher crude light levels. At mid-session things look well controlled.
Today's SPX point of contention was about 3625 and that corresponds roughly with Tuesday's ES point of control. ES support was found at Tuesday's halfback level around 3616. Today's stout session profile was one of consolidation. It has a very wide flat top. That often means unfinished business overhead.
The SPX cash weekly straddle, assuming price over 3600, is 3630. Overhead chart resistance is 3645 followed by the ES overnight high of 3655. The recent ath ES overnight high is 3668. The bulls seem to have their eyes on 3680/3700 but that level might require some environmental input or maybe just Thanksgiving Day punch. I would not be surprised if they try for those higher areas soon. On any headline weakness, support beneath 3600 can be found at 3570, 3550 and 3500. Bears are still active but feeling a bit of torpor while dip buyers are salivating and ready to buy at any of those levels. Today, as always, I remember the kind Aussies who always invited me to their holiday lunches. It meant more than they know. Hope you are having a good trading day.
