21 Nov 2021, 10:19

The last week was an uneventful week in the stock market as the S&P 500 moved sideways for the entire week. The momentum for the bulls were pretty weak as the index is still very close to the blue resistance channel line. Therefore, there was no continuation of the strong uptrend we saw in October.

The coming week is one of the most bullish weeks of the year. As we move nearer to Thanksgiving, stock markets tend to rally in the days preceding it. This is the time when Americans spend more for their holidays get-togethers as well as Black Friday the day after. However, we think that the market had priced in the good news during the October rally. Hence, we may not see any strong momentum for the next week.

We think that the market could move up a little and bounce off the blue resistance line again before it starts making a correction down towards the black channel support line. The bottom-line here is that the stock market’s too overpriced at this point and a correction would be due sooner or later.