Stock indexes following European debt drama

TUESDAY'S MARKET WRAP-UP

Market Snapshot for December 6, 2011 (8:55 a.m. ET):

Closing Prices: DOW 12,150.13 (+52.30, +0.43%), S&P 500 1,258.47 (+1.39, +0.11%), NASDAQ 2,649.56 (-6.20, -0.23%), Nikkei 225 8,648.70 (+73.54, +0.86%), DAX 6,028.82 (-77.27, -1.27%), FTSE 5,568.72 (+0.76, +0.01%)

OIL 101.34, GOLD 1,733.30, SILVER 32.64

EURO 1.3413, YEN 77.71, BRITISH POUND 1.5604, U.S. DOLLAR INDEX 78.565

Getting Technical

Tuesday was a rather slow day for the market. Volume was on the light side as the indices continue to struggle with price resistance on the daily time frame. The market saw a recovery from Monday's selloff, but the intraday action favored daytrades on the five-minute time frame as anticipated. Tuesday's session began with the markets continuing to push higher after reversing course once the European exchanges opened. This reversal kicked off with a Phoenix buy setup on the 15-minute time frame out of 3:00 a.m. ET, as shown on the ES chart in Figure 2.

In yesterday's column we looked not only at this all-sessions price action, but the intraday moves as well, to help predict early-morning action. Both the S&P 500 and Dow Jones Ind. Averages formed two waves of buying intraday after reversing in the final hour of trade on Monday. The first wave of the upside reversal continued into Tuesday's opening bell, was followed by a pullback into the 9:45 a.m. ET correction period, and then continued with a second wave of buying into the 10:45 ET correction period. This was price resistance at prior five minute highs and helped put the market once again into corrective mode intraday.

Dow Jones Industrial Average (Figure 1)

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