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InvestorMag's Weekly Guide to the Markets

Here's our weekly analysis of the markets. Enjoy and feel free to ask questions! Thanks!

Daily - Stuck in a trading range and has been forming an ascending triangle which tends to be bullish.
Weekly – Hitting 2 major resistance levels, the 50% fibonacci level and long term downward resistance.
Monthly – Hitting long term downward resistance, market touching 1200 wouldn’t be out of the question.

Daily - Also stuck in a trading range and has been forming an ascending triangle (bullish sign).
Weekly – Hitting a resistance level, support around 10,900 and a break of the channel would be bad sign.
Monthly – Hitting resistance at 11,500 from 2000, needs to break above; otherwise 10,000 is not out of the question.

Because of the all the contracts expiring in December, we question how much of the volume readings are “real”

If stocks continue to contract, it signals internal weakness in the markets. At the moment, their stalling at the 85% levels

With sentiment continuing to be this overly optimistic, we think it signals a red flag for anyone still long the markets

With stocks trading in a narrow range, it is hard to tell which direction the markets are making but with 52 week highs expanding, 1200 on the S&P shouldn’t be out of the question

For the past 3 months, small caps have failed to keep up with the large caps

Where do I think the market is going? Judging from what I see here, I’d say internal weakness is starting to develop in the markets but the overall direction of the markets is still narrow or up. After the month of December is over, we should begin to see some market moving action again. So if your still long, just have your stops in place. If your on the sidelines, just wait for some direction before jumping in.

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