Stock bulls find it difficult to push ahead

MONDAY'S MARKET WRAP-UP

Market Snapshot for November 14, 2011 (10:42 a.m. ET):

Closing Prices: DOW 12,078.98 (-74.70, -0.61%), S&P 500 1,251.78 (-12.07, -0.95%), NASDAQ 2,657.22 (-21.53, -0.8%), Nikkei 225 8,561.81 (-41.89, -0.49%), DAX 5,985.02 (-72.01, -1.19%), FTSE 5,519.04 (-26.34, -0.47%)

OIL 98.26, GOLD 1,779.30, SILVER 34.175

EURO 1.3621, YEN 77.13, BRITISH POUND 1.5895, U.S. DOLLAR INDEX 77.715

Bulls Struggle as New Week Kicks Off

The bulls had a difficult time heading into the new week. Resistance from late Sunday evening and early Monday morning held well. The market had room to attempt another slightly higher high heading into the European open, but a slight change in momentum on the five-minute time frame held those highs before the weakness we were looking for finally hit. Upside early Sunday evening kept the opening losses to a minimum, leaving the indices with only minor downside gaps into the bell, but the bulls were unable to regain the upper hand.

A two-wave congestion move throughout the morning as the market corrected from premarket selling led to a strong breakdown mid-day. The weakness continued into the afternoon following a similar period of correction between 12:30 and 14:15 ET. The gains made late last week off the lower end of the 60-minute trading range eroded even further following the open of the European markets on Tuesday morning before finally hitting support around 6:45 a.m. ET. Trade was actually quite decent throughout Monday and into early Tuesday morning. Support and resistance levels held extremely well and price patterns were clear-cut with strong waves of action and reaction throughout the week-to-date.

Dow Jones Industrial Average (Figure 1)

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