The major US Indices are trading at all-time highs, with the S&P500, SPY, and the Nasdaq100 (QQQ) at resistance. Volatility has dropped as well with VIX trading at 20.86. Price action into December should drift higher into January, given the seasonal “Presidential Elections” seasonality patterns the past 70 years.
Summary
We’ll wait for direction from institutions as the indices trade resistance. Price action in the big tech “FANG” stocks suggests a move out of this range could come soon, as these stocks appear to be coming out of a 12-week consolidation, showing signs of breaking out after a six-month rally from the March 23 reversal.
S&P500 (SPY) Resistance
RSI is above 50 again this week, printing above-average volume on Tuesday, to match the volume on Monday. In addition, S&P500 futures (-10.88) were quiet overnight, currently bouncing off the 3645 lows heading back to 3650.
Nasdaq 100 / QQQ Resistance
Given the state of big tech in the chart above, we anticipate a potential breakout of consolidation in those stocks which in turn helps the NDX/QQQ break above this resistance zone.
Stay tuned.
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Happy Trading,
Vinny
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