As always, Kevin has been doing some great technical analysis on his blog and recently he's noticed a pattern in the S&P 500 (SPY). As you can see from the chart below, the market seems to sell off towards the end of the month and rally at the beginning of the month. This pattern is pretty structured and would imply near-term downside for stocks before resuming the trend of stair-stepping higher.
(click to enlarge)While this potential pattern seems negative for the near-term, it conflicts with another pattern. Seasonally, the Thanksgiving holiday week typically has an upward bias if you look at it over the past 10 years. So, it will be interesting to watch and see which trend takes precedence here. *Update: As of this morning it certainly seems as if the Thanksgiving trade is on with markets up sharply higher and has the SPY hitting a new 52-week high.
Heading into the short holiday week in the markets, the OptionAddict has pumped out his weekly watchlist video full of some nice technical analysis. He hits up the charts to identify patterns to give you a list of actionable trade ideas for the near-term.
Embedded below is the video (Email readers come to the blog to watch it):
For some more trade ideas, check out his watchlist from last week as well as many of these setups take some time to unfold. And if you want to learn more about technical analysis to add it to your financial arsenal of tools to use, check out our technical analysis recommended reading list or this free trading course via email.
