Market Trends and Key Levels to Watch Ahead of the Holiday Week | November 22, 2024
The week is wrapping up, and with next week being a holiday, expect less activity in the markets. This usually leads to a slight upward trend, but lighter volume can also cause unexpected moves. Here’s what’s happening and what to keep an eye on.
The S&P 500 is mostly flat right now, with some minor selling showing up in early trading. This pattern has been happening all week: heavy selling in the first hour, then a bounce back by mid-morning. That’s likely algorithms at work — big players selling early when trading is busiest and stepping back after 10:30 AM, letting retail buyers push prices higher. Resistance is still around 6100, but pullbacks could find support at recent lows or gap-fill levels. Watch for any signs of a trend shift, like lower highs or lower lows, as those are early warnings of a bigger drop.
The Nasdaq 100 is forming a wedge pattern, meaning prices are getting squeezed tighter between rising support and overhead resistance. A breakout or breakdown will be a major move, and it looks like this could happen by the end of December. In the short term, the index still has room to fill a gap, so there’s a slight bias to the upside going into next week.
For individual stocks, Nvidia didn’t move much after earnings, even though options traders were betting on a big swing. The options were priced for a 12% move, and since Nvidia didn’t even come close, anyone holding options likely lost money. Ross Stores and Gap both saw pre-market moves after earnings, but they’re coming up on some key resistance levels where sellers might step in. For now, they look more like short-term plays if they hit those targets.
Bitcoin’s big test is coming at $100,000. Breaking that level could spark a short-term spike because a lot of traders will be forced to buy back their positions, and new buyers will likely jump in. But if it doesn’t break soon — by Monday — there’s a risk of a pullback to around $90,000. The clock is ticking, and how it handles this level will set the tone for its next move.
Gold hit a resistance level, which was a good spot to take profits for short-term trades. Long-term, it’s still looking strong, but it might take a breather here. Silver is struggling to break past a major resistance level. Every time it tests it, prices get pushed back down, but with enough attempts, it could eventually break through.
Natural gas had a strong run recently, but it hit a key level where selling made sense. The pullback has been sharp, and it’s already hit short-term profit targets. This is a great example of waiting for the right setup and locking in gains when they come quickly.
Going into next week, with fewer traders around, expect slower moves, but also be prepared for some surprises since low volume can lead to sudden price swings. The S&P and Nasdaq are heading toward key levels, and how they react will likely shape the market’s direction for the rest of the year.
