Bullish or Bearish? Week of November 22, 2021


This is what the technical indicators are telling us this week: 

One-week trend = FLAT. The bulls took back control during the week. SPX rallied from 4682 to 4697, landing at the exact spot as a week ago (a 15-point gain). Very odd! SPX is still near its all-time highs. Futures are flat on Sunday night but that could change in the morning. 

SPX 20-day moving average (WEEKLY): HIGHER. SPX is above its 20-day moving average and is still in an uptrend. 

RSI: (S&P 500) @71.63 (WEEKLY) OVERBOUGHT = RSI says that SPX is extremely overbought (above 70), and can’t seem to budge.

MACD (WEEKLY) = SLIGHTLY BULLISH: MACD is above the zero line (bullish) and slightly above its 9-day signal line. MACD is not giving significant signals.

Daily Intraday Volatility (VIX) = 17.91 = Still no worries on Wall Street as VIX remains on the low side.

Comment: It’s a shortened week so I’ll keep it short. Thanksgiving is Thursday and there is a half day of trading on Friday. Last week, SPX gained back the 15 points it had lost.

There isn’t much to say about the market. Inflation has appeared but the Fed acts like they have it under control. We shall see.

In past years, the market tended to rally before holidays, but there is no guarantee that will happen this week. Enjoy the three trading days but be careful as strange things can happen to the market before holidays (i.e., lots of head fakes). On Friday, volatility should be subdued. It’s usually not a great trading day.

Have a great Thanksgiving and I’ll see you next Monday.


Stock evaluation program from Barchart: https://bit.ly/3v9Nj9G 

For daily results of multiple indicators, read Yardeni Research: https://goo.gl/eT3fzA

For insightful analysis of the stock market, read Lance Roberts’ latest newsletter:www.realinvestmentadvice.com

For insightful analysis of economic conditions, read Wolf Richter: https://wolfstreet.com

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