Daily Market Update for 11/11

Original Chart

Notes

Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog.

Thursday, November 11, 2021

Facts: +0.52%, Volume lower, Closing Range: 12%, Body: 66% Red
Good: Higher low, higher close
Bad: Lower volume on gain, closing range
Highs/Lows: Lower high, Higher low
Candle: Inside day, mostly red body
Advance/Decline: 0.62, three declining for every two advancing stocks
Indexes:SPX (+0.06%), DJI (-0.44%), RUT (+0.82%), VIX (-5.71%)
Sector List: Materials ( XLB +0.80%) and Technology ( XLK +0.47%) at the top. Industrials XLI -0.41%) and Utilities ( XLU -0.61%) at the bottom.
Expectation: Sideways or Lower

Market Overview

Trading was muted on Veteran’s day as markets had lower than average volume . Nvidia led chipmakers higher while industrials weighed down the Dow Jones.

The Nasdaq closed with a +0.52% gain, helped by the Technology sector. Volume was well-below average for the day. The index had an inside day, marked by a lower high and higher low. The candle is short but almost entirely red body as the rally in the morning faded throughout the rest of the day. There were three declining stocks for every advancing stock.

Small-caps in the Russell 2000 (RUT) led the day. The index closed with a +0.82% gain. The S&P 500 (SPX) closed flat with a small +0.06% gain. The Dow Jones Industrial Average (DJI) declined -0.44%. The VIXVolatility Index fell by -5.71%.

Five of the eleven S&P 500 sectors gained for the day. Materials ( XLB +0.80%) and Technology ( XLK +0.47%) were at the top of the sector list. Industrials XLI -0.41%) and Utilities ( XLU -0.61%) were at the bottom.

The US Dollar continues to strengthen. The index ( DXY ) climbed by +0.30% today. US Treasury markets were closed for Veteran’s Day. Gold and Silver continue to gain. Gold gained +0.70% while Silver rose +2.49%. Timber, Copper , and Aluminum and gained for the day.

The put/call ratio ( PCCE ) dropped to 0.583. The CNN Fear & Greed index remains in Extreme Fear but is declining a bit. The NAAIM money manager exposure index remained above 100, coming in at 103.69 this week. The index remained elevated in November 2020 as well.

Of the four largest mega-caps, only Microsoft MSFT ) gained for the day, advancing +0.49%. Microsoft has the healthiest chart of the four. Apple AAPL ) remained below its 21d EMA but above its 50d MA. Amazon ( AMZN ) and Alphabet GOOGL ) are still above both key moving averages.

Nvidia NVDA ) was the top mega-cap for the day, advancing +3.16% today. Walt Disney (DIS) dropped -7.07%, ending the day at the bottom of the mega-cap list after missing estimates for both revenue and earnings .

The Daily Update Growth List was about 50% gainers for the day. JD.com was the top stock in the list, gaining +8.31%. It was followed by Enphase ( ENPH ), which climbed by +8.21%. At the bottom of the list was Beyond Meat BYND ). The stock slumped -13.28% as analysts cut targets after the company lowered guidance for the year.

Looking ahead

The JOLTs Job Openings data will be in view tomorrow after the market opens. We will also get Michigan Consumer Sentiment and Expectations data in the morning.

AstraZeneca ( AZN ) will report earnings Friday morning.

Trends, Support, and Resistance

The Nasdaq rallied at the market open but faded the rest of the day.

If the index returns to the trend line from the 10/4 low, it would mean a +2.51% gain for Friday. That does not seem likely, and I’ll retire that trend line depending on Friday’s result.

If the one-day trend line continues into tomorrow, it would mean a -0.12% decline.

The five-day trend line , which now stretches from the all-time high, points to a -0.74% decline for Friday.

Wrap-up

There was not much to look at in today’s market as volume was lower due to the holiday. Given the inflation data this week, analysts will be looking at the impact on consumer sentiment and expectations data that comes tomorrow. If the data shows consumers brushing off the most recent month of inflation , that can soften the worries of long-lasting inflation .

The expectation for Friday is Sideways or Lower.

Stay healthy and trade safe!

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