Can Internals Pick Up To Confirm Advance In Price?

In last weekend's report, we wrote:  "In the coming week, I expect some consolidation type of price action to happen b/w 4380 and 4330 area and once that is done, another push higher into the 4450/4500 area."

A pullback/consolidation followed by a move higher last week is exactly what we got.

Looking ahead, price action is bullish short term, bullish medium term and bullish long term.  Price action by itself looks ok, but internals are not that relatively strong. This mostly has to do with the weakness in small caps, but still internals not being that strong is something that we should be paying attention to.  In the coming week, I would like to see internals pick up to confirm the advance in price.  Otherwise, it could be that we are working on some kind of top, and a bigger pullback is to follow soon.

Our Odds Indicator stayed long during the previous week, but I am watching for a sell signal to show up soon mainly due the weakness on the internal side. If they pick up soon, the potential sell can be avoided, but bulls need to step up here soon. 

Seasonally, we might be very close to getting into a weak time period in the second half of November if looking at the presidential cycle.  On price, 4440 area is resistance.  Clearing this will open up a test of the 4480 area. On the downside, 4410/4400 is support.

Grey zone resistance at 4334-46 and then 4475-86. Support is at 4412-01 and 4369-56. 

For Monday, daily pivot is at 4405. Resistance R1 is at 4455 and R2 at 4486.  Support S1 is at 4374 and S2 at 4323.5.

All the best to your trading week ahead.

Princely Mathew hosts The Smart Money premium service at ElliottWaveTrader.