Monday, November 30, 2020
Red Arrow Down
DJI30 Index at the close —- 29,638.64 -271.73 (-0.91%)
The Index opened at 29855, off 56 points, then dropped to 29630 in the first 6 minutes. After a bounce near 29700, it resumed falling, hitting a lo of 29476, off 435, at 10:45. There was another bounce to 29600 before a drop to the day’s lo of 29464 after 11:30. From there it was a jerky rise to the close, including a jump of 70 points in the last 2 minutes.
All the indexes were down today, with the Russell 2000 as the biggest loser. For what it’s worth, NYSE volume was the greatest since 9/18, and more than double what the average has been since.
This is a clearly down day, with the hi and lo off by 161 and 356 points, respectively. The span was 390. Momentum is sideways, Since 11/09 there have been 7 closings under 29500, so this is really going nowhere. Today’s range is actually in the upper half of the trading range since that date, and the closing is 158 points above the the midpoint of that range. It’s going to take a bigger fall than this to turn momentum downward.
I do expect that to happen, though, with an intermediate lo occurring around mid-December. This is speculative, of course. Meanwhile, equities remain wildly over-valued by any historical or rational metric. But the markets are fueled by emotion, not logic, so this can go on for a considerable time.
But the day of reckoning will come. It always does.% Changes -
Russell 2000 -1.91%
DJI30 Closings -
11/30/18 - 25538
01/02/20 - 28869
10/30/20 - 26502
11/27/20 - 29639
NYSE Internals -
A/D = 958/2190 = 0.44
A/D Vol = 0.27
New Hi/Lo = 170/4 = 42.50