The outlook for market direction today was for the down move to continue. I am not looking for a big slide or steep down day just a sideways movement with the bias pushing lower. Instead today has been erratic with movements up and down. Let’s take a look at the 1 minute chart before looking at some specifics. Remember that for the S&P 500 I am watching the 1750 level. If 1750 breaks then the rally is over and the market direction will change to down.
Market Direction Outlook Intraday – 1 Minute Chart
Intraday you can see the action has been up, down and then up again. In the early morning there was a big gap up move which I am expecting the market direction may try to fill. What I am expecting is the market direction to move up and then pull back to around 1755 to 1754 level. You can tell that investors really are looking for stocks to move higher and they are fighting against sellers and an overbought market. A few more days like this though and the overbought condition will have weakened considerably which should allow the market direction to continue to move higher.
Market Direction Into The Close for November 1
Again, this is just a period of weakness caused by a variety of factors but primarily the overbought condition, the Fed comments and uncertainty as well as nervousness among investors. I am not expecting any big decline ahead and today I would expect a closing somewhere near where I predict above but I do believe the markets are trying to remain stable here into the weekend so in the end we could see a very flat close.
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