Signals & Trading Plan for Tuesday 11/26/19

Market context
$SPX $NDX SPY QQQ TQQQ charged out of the gate at open, gapped up and continued marching up during the morning.  This was expected as we described in our weekend analysis.  Prices were going to test Resistance1 again.  And they were in a hurry to do so, after dawdling about at the end of last week.

Prices passed the test at Resistance1, so Surge9 is intact for now.  
The question on the minds of most traders is “should we be shorting yet?”   We will discuss that below.  

Trade review
In the trading plan for Friday 11/22, we proposed this trade to consider for short and intermediate term: 

If you are waiting to enter long $SPX $NDX SPY QQQ TQQQ:

• Enter a small position near Support1 Friday.
• Protect with stop set below Support1. 
• Tighten stop as $SPX $NDX SPY QQQ TQQQ rise up near Resistance1 to test it.
• If prices surpass Resistance1, your position will ride along upward.
• If prices fail to surpass Resistance1, you will get out at your stop to protect a small profit.

Prices tested Support1 one last time on Friday.  The above trade got filled.  This is what the model portfolio looks like.

The rest of this article covers:
Table of support and resistance levels
Market directions: short, intermediate and long term
Planning your trades

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