MLR - Premarket Pulse November 29, 2012

Published:

29 Nov 2012 13:34 ET

After a sharp sell-off in the morning, the major market indexes staged an outside reversal day and turned higher once it seemed more likely that a "Fiscal Cliff" budget agreement would be reached. The S&P 500 and NASDAQ Composite Indexes finished at the peak of their respective trading ranges as the NASDAQ Composite was able to regain and close above its 200-day moving average though on slightly lower volume while the the S&P 500 found support at its 200-day moving average earlier in the day and closed up on higher volume. The market looks to continue higher as futures are trading up about 0.6% as of this writing and European bourses are up almost 1%.

SPDR Gold Shares (GLD) and the iShares Silver Trust (SLV) gapped down at the open due to fiscal cliff concerns then rallied back with the general markets as fiscal cliff danger faded. The SLV was the only one of the two to regain its 50-day moving average, and currently appears to be the stronger of the two precious metals ETFs. While yesterday's action did not precisely qualify as a pocket pivot buy point for the SLV, it did show some strong volume support on the gap-down move in the precious metals, which were allegedly caused by a gold futures contract rollover somehow turning into an outright sell pre-open, causing the GLD and SLV to gap down below their 50-day moving averages.

Apple (AAPL) managed to close at the top end of its range and closed down on the day, though on lower volume, while remaining under its 200-day moving average. The stock appears poised to make another run at the 200-day line, currently running between 599 and 600. Priceline.com (PCLN) broke out of its recent price range under its 200-day moving average, providing some constructive action among big-stock NASDAQ names, including Google (GOOG) which has been able to move back up further towards its 50-day moving average after finding support at the 200-day line two Fridays ago. All three big-stock NASDAQ names could have room to move higher within their overall chart patterns in a continued market rally.

Commvault Systems (CVLT) made new highs after its most recent pocket pivot on 11/26 per our report of that day (see https://www.virtueofselfishinvesting.com/pocket-pivot for complete information on pocket pivots). CVLT is poised to push for the 70 price level this morning based on pre-open trade.

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