Should We Dance Near the Exit?

Good Morning:

• I hope everyone had a wonderful Thanksgiving holiday. Time with friends and family can be an amazing cure for the ills surrounding us this year.
• For the markets, we now have two closes over 4000 for the S&P 500 under our belt. The 11/15 intraday high near 4050 and the 200-day line around 4075 are within reach.
• If those levels are achieved, our longstanding “C” = “A” rally target comes into sight at 4126.50.
• Futures are off slightly to 4035 on this holiday-shortened trading day. The Call Wall for the SPX/SPY is now in sync at 4050-4060 (SPY405), which is the major resistance area for today. Support shows at 4024 and 4000.
• We must prepare ourselves for a highly volatile December with another Fed Meeting looming on December 2. Paradoxically, a gigantic reversal pattern to potentially take the market up near the former highs is forming on the S&P 500 Index. 
• Is such a reversal even possible? Or are we dancing near the exits, tempting fate? A late-year market recovery would catch many people off guard – another so-called “pain” trade. Only time will tell.
• For now, as long as the market holds the daily 5-day line and the Navigator Algo trigger, the 10/13 buy Navigator buy sIgnal retains its validity, even though it does seem long in the tooth. 
• And good, bad, or indifferent, we have passed the midpoint of the nominal 80-day cycle, and we should see this wave peak soon and chart a path into a mid-December trough.
• As always, we will let the Navigator Algorithm do the work while we continue to work the hourly chart signals.
• I am excited to introduce the new BluQuant day-trading strategy and algorithm in the trading room next Tuesday. I will have all the written rules out to subscribers on Sunday night. 
• Wednesday’s 5-minute chart appears above. We will do a dress rehearsal on Monday in the room, but Tuesday, we will get serious. I will have the chart in the room today so you can watch it in motion. 
• Watching this system paint the buy/sell signals is a wonder as it structures the trading frames in real time, predicting each turning point. The algo proves that we live in some matrix governed by ascertainable mathematical rules.

I wish you a joyous holiday season!

A.F. Thornton