Stocks In A Box
Market Update for Thursday December 7, 2023
It’s getting redundant, but the bullish consolidation continues.
SPY and QQQ continue to move sideways this week, trading on either side of the 5-day MA while the 8 and 21-day MAs catch up and provide some support.
This snapshot shows the action best - stocks in a box.
The bears took a shot yesterday, selling the ‘gap up’ open all day, but they could not follow through today.
So far, the Bulls keep winning.
SPY & QQQ 65m charts
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SPY with an inside day above the 8-day MA. The Bullish consolidation continues.
QQQ was able to close slightly above yesterday’s high and is back over the July pivot high after three days of testing the 21-day MA.
IWM is building a smart-looking bull flag just above the 200-day MA while the 8-day MA catches up. A breakout would give a measured-move price objective above the August pivot high.
DIA is forming a pennant pattern above the pivot level, with the 8-day MA catching up. The next potential resistance is the $369.50 pivot from January 2022.
TLT is showing a potential reversal in front of the declining 200-day MA. The progress has been substantial. How far can it go?
DXY US Dollar futures dipped below the 8 and 200-day MAs briefly. More comments below.
The chart patterns are bullish, and the path of least resistance looks to be higher. Nonfarm payrolls will be announced at 8:30 AM tomorrow. See if it puts a wrinkle in anything.
The Closing Bell
The Dollar continues to be a powerful factor in the movement of stock prices.
A week ago:
Today’s update before the open:
The reversal lower is helping stocks. As SPY and QQQ continue consolidating and rebuilding strength, keep watching Dollar futures at $103.40.
They dipped below today and moved back above.
When they close below that level is likely when stocks break out and begin the next leg higher.
See you Saturday morning for the 📈 Weekly Chart 📉 thread on X.
***This is NOT financial advice. NOT a recommendation to buy, sell, or trade any security. The content presented here is intended for educational purposes only.
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December 7, 2023, 4:00 PM
Long: ADBE, AMZN, AMZN1229C150, GOOGL, IWM, META, METC, NVDA, QQQ, RIVN, RXRX, SPY1208P455, TSLA1215C250
Options symbols are denoted as follows:
Ticker, Date, Call/Put, Strike Price
Example: VXX1218C30 = VXX 12/18 Call with a $30 strike