The market showed volatility on Monday at the start of the shortened holiday week. The market will be closed on Thursday for the Thanksgiving holiday and will open for a half day and close at 12:00 pm Central on Friday.
The holiday week could bring more volatility with big money causing increased price action. On the other hand, the market could see an “early holiday”, where we can expect chop to finish the week.
Keep in mind that premiums could get aggressive. Size down, have fun, and understand the type of conditions we are dealing with.
The market had a decent selling day on Monday, as the S&P 500 (ES) lingered near its high at $4,740.50. After last week’s options expiration, volume picked up and started a textbook reversal.
We’re working with a lot of the same key levels as last week now that the ES dumped to our key zone through point of control (POC) at $4,695 to the lower POC at $4,673 on Monday.
While we’re mostly focused on trading the overall market this week, let’s review some key setups that could lead to strong opportunities.
Here is our focused list:
GOOGL — The trendline aligned with the daily mean at $2,928 on Monday. If the market does move higher, we could see a dip buy opportunity at the mean. If GOOGL breaks its trendline, it could drop to POC at $2,909 to $2,891. If it starts to grind higher, we could see a move to POC at $2,969 and potentially to $3,000. Be patient and see if technology continues its weakness.
NVDA — Pay close attention to NVDA because it has been a strong name this year. It had another gap on Monday that could lead to a potential dip buy opportunity. If the market becomes more bearish, we could see a move to the range from $313 to $305. With POC at $304, this further confirms a gap fill. If it goes further, NVDA could revert to the mean at $287.
Stay Focused!