Market Commentary For 12/2/2020

Daily commentary for U.S. broad market indices.

What Happened: A day after major indices established record highs, futures remain outside of a bigger balance-area, suggesting acceptance of higher prices and improved odds of further upside.

What Does It Mean: In Tuesday’s regular trading,¬†initiative buyers extended range, further confirming the break from last week’s balance area.

Thus far, there were two significant attempts overnight to auction back into the balance area. Auctioning below the upper balance boundary, below the $3,640 ledge, would be the most negative outcome, and could foreshadow a test as low as the lower balance area boundary, near $3,590.

Given that the S&P 500 remains outside of the week-long balance area, above the $3,640 ledge, participants know that initiative buyers remain in control and pullbacks are buyable. Auctioning into and below the balance area boundary, puts the rally on hold, and suggests further balance.

Levels Of Interest: $3,640 ledge.

Bonus: The S&P 500’s higher timeframe breakout remains intact.

Pictured: Daily candlestick chart of the cash S&P 500 Index

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