The market was oversold going into Monday and that coupled with a rise in the price of oil, pushed the S&P back above 2025 and 2050, two light support levels. Stocks that benefited from today’s jump in oil included Exxon Mobil and Chevron among others. Exxon Stock rose 3.59% to $80.90 after briefly touching $77.91 in the morning.
The bombing of Raqqa, Syria by France, which is believed to be the headquarters of the ISIS command, elevated the price of crude oil among speculation that oil supplies might tighten if the war escalates.
Part of the jump on Monday was also caused by short sellers who in the later afternoon began covering positions. The last hour saw more than a billion shares traded with the majority of that volume in the last half hour.
Advance Decline Numbers
Volume was low at 3.68 billion shares but considering that over a billion of those shares were traded in the last hour, volume was poor on Monday. New lows dropped off from Friday with 129 new lows which was slightly less than half Friday’s number. New highs were low at 11 but they will take days to recover so the new lows are the number we should be watching at present.By the close of the day 82% of all volume was positive, thanks to the huge amount of covering by short sellers in the last hour.
Market Direction Closings
Markets closed at their highs. The S&P closed at 2053.19 up 30.15. The DOW closed at 17,483.01 up 237.77 . The NASDAQ closed at 4984.62 up 56.73 for a 1.15% gain which was the poorest of the 3 indexes.
Members Only Market Direction Outlook for Nov 17 2015
The rest of the Market Direction Outlook is for members as I lay out the market direction I am expecting for Tuesday and discuss some investing trading tips along with a review of the trades from Monday and a couple of trade ideas for Tuesday.
FullyInformed Members can read the latest Market Direction Outlook and review my trading outlook directly through this link. Members can also sign in to the Members’ site here. Non-members can join here or read about the benefits of a membership.
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