Talking points on the S&P 500, Nasdaq 100 and Dow Jones

• S&P 500 advances ahead of FOMC meeting minutes as US PMI slumps
• Dow Retail Sentiment Turns Bullish Despite Fundamental Risks
• Nasdaq 100 Hits Trendline Resistance As Liquidity Remains Thin

US PMI drives dollar lower ahead of FOMC minutes as volume remains light

The economic data dump on the eve of Thanksgiving sent U.S. stocks higher as liquidity and volume decline. With seasonality and the US holiday weekend contributing to lower trading volume, major resilient indices remain flat across the board.

With the three major US equity indices, the S&P 500, Nasdaq 100 and Dow Jones on track for another week of gains, sentiment continues to be fueled by mixed earnings and rate expectations. of interest.

Throughout the week, a slew of Fed speakers reinforced the need to control inflation by raising rates despite recession risks. While the FOMC meeting minutes are expected to reiterate the need for further tightening, the weaker PMI data lifted stocks, bringing SPX back above the 4000 psychological level.

Read: S&P 500 at risk of tumbling as PMIs hit, but tracking would be a problem

As price action hovers above the 38.2% Fibonacci retracement of the August-October move to 4006.81, an upward move could allow for a retest of the prior support-turned-resistance low. May at 4056.88.

S&P 500 daily chart

Chart prepared by Tammy DaCosta using TradingView

Meanwhile, as the Nasdaq 100 moves above 11700, the US Tech 100 is currently testing 11860 Trendline resistance while the 2020-2021 move 50% Fibonacci holds imminent support around of 11768.

Nasdaq (US Tech 100) Daily Chart

Chart prepared by Tammy DaCosta using TradingView

Dow Jones Sentiment (Wall Street 30)

Wall Street: Retail trader data shows 23.50% of traders are net long with a ratio of short to long traders of 3.25 to 1. The number of net long traders is 12.09% lower than yesterday and 20.45% lower than last week, while the number of net-short traders is 8.42% higher than yesterday and 20.04% higher than last week .

We generally take a contrarian view of crowd sentiment, and the fact that traders are net short suggests that Wall Street prices may continue to rise.

Traders are even sharper than yesterday and last week, and the combination of current sentiment and recent shifts gives us a stronger contrarian bullish trading bias on Wall Street.

Additional Reading for Stock Traders

— Written by Tammy Da Costa, Analyst for DailyFX.com

Contact and follow Tammy on Twitter: @Tams707