Election day–all is quiet on the market front

overall market outlook, gap analysis, trade expectations

Yesterday we saw sellers auction price down to the previous major support zone around 141. That level proved to have value as buyers supported that area and closed us on the highs of the day. I am not expecting fireworks today, given we will not have the election results but I think it will offer some 2-way action with a bias to the upside. I would anticipate the 142.6 zone we fell through on Friday afternoon to be the cap to our follow through bullish move today.

Minimal gap up this morning, I will be playing price as it unfolds.

My trade expectations today are minimal. Mostly scalps and some small point moves. I do think there are some opportune setups but I am not anticipating to be very active today, taking things slow and letting price show its hand to me.

30-Minute key SPY levels
  • $SPY support at 141.7. Intraday point of interest yesterday, Bulls would not want to lose this zone if they expect to carry any momo to the upside.
  • $SPY resistance at 142.6. This should offer fairly signficant resistance, especially the first time price auctions near it. This is the level we waterfalled from on friday afternoon.
Actionable Setups
  • $SPY – buy at 141.75 with a stop at 141.52 and a target of 142.5. All depends if we don’t scream higher before we open or at the open. If we tag the target area before the entry, the setup changes
  • $AAPL – long at 687 with a stop at 684.5 and a target of 693. Seeing a gap up above yesterdays highs this morning, if we can get an early flush I like buying into support for a rally to prior resistance.
  • $PCLN – long at 634.5 with a stop at 631.9 and a target of 639.4. Built a nice base yesterday and today we have a small gap above it. If we can grab it around 634, see it hold this confluence of support zone i think it sets up great risk/reward, with target 2 really 642 or so.

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Evan Medeiros

Evan is the founder of the Trade Risk. With 25 years of coding experience and a B.S. in computer science, Evan brings a systematic discipline to investing in the stock market.

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  1. Jason on 9:44 am November 6, 2012 at 9:44 am

    Regarding AAPL trade, I think you mean 587, 584.50, and 593, I hope! 🙂

    • Evan on 9:54 am November 6, 2012 at 9:54 am

      Right you are Jason, thanks ! and to update , with the market already bumping against 142.6 I would be careful of AAPL long here given its sluggish start. I slid my entry down closer to 585 for a few dollar pop

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