Good morning! The Dow Jones Ind. Average rose 89.72 points (+0.7%) on Monday, while the S&P 500 climbed 12.41 points (+0.9%) and the Nasdaq Composite gained 35.18 points (+1.5%), creating a strong start to the new week. Even though Pfizer (PFE) experienced the largest one-day decline in two years after halting development on a highly anticipated cholesterol drug because of safely concerns, a number of mergers helped provide a boost to the market. The late-day turnaround on Friday followed through to the upside well into the morning on Monday. The market gapped slightly higher to start the day and then continued the rally after a base along the highs into 10:00 ET.

Although the momentum of the buying slowed as the day progressed, the market continued to climb throughout most of the day. The indices stalled initially at Friday's highs and the Nasdaq's 15 minute 200 sma resistance, but then continued out of 11:00 ET after the Dow and S&P 500 found support at their 5 minute 20 simple moving averages. This was the strongest wave intraday buying, taking the market back into last Thursday's highs before correcting again over noon.

The volume in the market dropped off significantly over noon as the market fell into a trading range along the day's highs. The range broke out of the 13:00 ET reversal period and continued at 13:30 ET. Compared to the 15 minute rally off Friday's lows, this mid-day correction was not substantial enough to lead to another strong rally on the 15 minute charts, but it was enough to take the S&P 500 to new  highs on the year. The slowing pace, however, made it difficult for the trend to continue to progress and the 5 minute 20 sma, which had held the market up through the day, finally gave way into the last hour of trading.

The strong upside reversal on the 30-120 minute charts since Friday will help sustain the market as the week continues. The highs from the 20th-24th will continue to serve as resistance for the Dow and Nasdaq, but it is now going to be a bit easier to see an attempt at a double top or slightly higher high for a 2T pattern since the market is following the 20 day sma back into the highs instead of just bouncing off that support to retest the resistance.

Economic Reports and Events This Week
Monday: -
Tuesday: Productivity-Rev. for Q3 (8:30 am), Factory Orders for Oct. (10:00 am), ISM Services for Nov. (10:00 am)
Wednesday: Crude Inventories 12/01 (10:30 am)
Thursday: Initial Claims 12/02 (8:30 am), Consumer Credit for Oct. (3:00 pm)
Friday: Average Workweek, Hourly Earnings, Nonfarm Payrolls, and Unemployment Rate for Nov. (8:30 am), Mich. Sentiment-Prel. for Dec. (10:00 am)

Key Earnings Announcements This Week
Monday: NRGY, IMKTA, CMTL, CNQR, and PLL
Tuesday: AZO, KR, SAFM, TOL, WWE, AGIL, CPRT, NOVL, and PLAB
Wednesday: KFY, TWTR, NX, CWST, DDMX, GEF, LQDT, NCS, SEAC, UTI, and VTS
Thursday: CRMT, CBUK, FLE, GIL, HITK, JJZ, JOSB, METH, MOV, PTMK, TOPT, TTC, ATW, CENT, SMOS, DMND, ESL, NSM, SHFL, and PAY
Friday: BKRS
Note: All economic numbers and earnings reports are in lines with those compiled by Yahoo Finance and Briefing.com. Occasionally changes will occur that are made after the posting of this column.

Toni Hansen is President and Co-founder of the Bastiat Group, Inc., and runs the popular Trading From Main Street. She can be reached at Toni@tradingfrommainstreet.com.