11/29 Daily Commentary

SPX hit resistance in cash at 1190.25 and in futures hit the hourly M/A at 1190 and approached the 30-minute M/A at 1190.50.  The rally overlapped the prior wave 1 down so it is not in a 5 down.  So far it has completed 3 waves.  Cash was forming a rectangle into the close.  Moving averages were clustered at the top of the rally in both cash and futures.  Instead of turning tail and running SPX and DJ futures backed off slowly and have made a 3 down.  I sold the SDS on ARCA at 26.91.  I'll go short tonight if SP futures 15-minute M/A (green line) is broken by more than 2.5 points.

The market's action is consistent with trading range behavior.  An important DJI M/A closed stop on it after this morning's low.

SPX approached last week's low but did not pierce it.  The DJI new low was a fake-out setup for the rally.