EB Daily Market Report - Quick Update - Wednesday, November 29, 2023

ChartLists/Reports

After the show and trading room this morning, I worked on and have just completed (FINALLY!) the fully-annotated Raised Guidance ChartList (RGCL) and it should be available on our website either later this afternoon or early tomorrow morning. I'll be working to update all of our ChartLists by this weekend, earlier if I can. Also, I'm planning to send out our December Seasonality report during the day tomorrow. So be in the lookout for a lot more EB research before the week ends.

Brief Market Update

Well, I've been watching weak market action in the mornings the past few days with intraday buying. Today, we see the opposite. Stocks took off to the upside this morning with the IWM clearing a very important hurdle at 178.33 on the opening bell. Since then, however, selling has kicked in. From a daily chart perspective, not much has really changed. We're continuing to consolidate in sideways fashion.

Value-oriented stocks are leading today. I'll be watching to see if this behavior continues into December. Historically, December is a time when we see this type of rotation, so don't be spooked if it we see it last for awhile. Here's the current performance today:

Financials (XLF), in particular, is challenging a key overhead price resistance level, but backing off from the high of the day:

The IWM also seems to be failing at price resistance in the near-term:

I don't like these long tails to the top. We might have to deal with a bit of short-term selling before we make this next breakout. I see the IWM going higher and I still love this setup, but the all-day selling after the initial push higher suggests there's a higher likelihood of a pullback. We'll see. If bulls can regain control into the close, it might be a different story. I'm invested, but not taking any big chances with leverage at this point. I'd be much more inclined to take on more risk (ie, leverage) if we pulled back to a key support level like the rising 20-day EMA.

The NASDAQ 100 ($NDX) also looks like it could be rolling over. Check out its PPO and today's candle:

Don't misunderstand me. I'm definitely not bearish. But candlesticks can provide us clues as to short-term direction and I just don't like the way we're finishing today. Maybe tomorrow is different. For now, though, I'm happier being less invested and reducing short-term risk.

Happy trading!

Tom