Closing at new record highs on Friday, the bears have decided they have something to say this morning trying to claw back a good portion of the move.  The good news is with the banks closed in honor of Veterans Day, the bears may find it difficult to find enough energy to create much technical damage.  Although it’s always disappointing to see a weekend reverse a strong close of the previous week, the volume is likely to be light and price action choppy due to the holiday.

Asian markets closed the day seeing only red with trade tensions growing over the weekend, and Hong Kong protests flare up once again.  European markets are also bearish this morning as they watch trade developments, and the US Futures are following the same path the Dow pointing to a triple point gap down this morning. 

On the Calendar

There are no events on the Economic Calendar with the banks closed due to Veterans Day.

We have over 140 companies reporting earnings results today.  Notable reports include FOLD, FNV, TME, and TERP.

Action Plan

Having taken a few days off, I feel a bit out of the sorts this morning trying to catch up, so this blog post will well be short.  Although the DIA, SPY, and QQQ closed at a new record high on Friday it was interesting to note that T2122 slightly declined.   That often suggests the rally was not broad-based with just key stocks rising to finish the week strong.

This morning futures are decidedly bearish looking to take back a sizeable portion of Friday’s rally at the open.  However, with the banks closed for Veterans Day, this pullback may not create any serious technical damage.  In fact, after the morning rush expect price action to become light and choppy.

Trade Wisely,

Doug