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Market Commentary For 12/1/2020

Daily commentary for U.S. broad market indices.

What Happened: Alongside optimism surrounding a coronavirus vaccine and the economic recovery, stock index futures are trading out of range and balance, improving the prospects for further upside.

What Does It Mean: In Monday’s regular trading,¬†responsive buying surfaced after the repair of poor structures left behind the November 24 upside discovery process.

Simply put, the S&P 500 established a v-shaped recovery — 100% retracement of the November 30 session high — after a test of the high-volume node near $3,600 offered responsive participants a favorable buying opportunity.

Overnight, buyers further extended range, breaking a week-long balance area.

Given the bullish break above the responsive selling ledge at $3,640, participants now know that initiative buyers are firmly in control, and the primary target remains the $3,668.75 all-time rally high.

Due to the gap’s size, the odds of range expansion during the day session are lower. As a result, participants should monitor whether the resistive $3,640 ledge now turns into support. Breaking below that level puts the rally on hold, and suggests further balance.

Levels Of Interest: $3,640 ledge, $3,664.75 overnight high, $3,668.75 all-time rally high.

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