Another Range Bound Day Into Thanksgiving


Joseph Rangel

Nov 23rd 2022  .  3 min read

Another Range Bound Day Into Thanksgiving

Thanksgiving price action has not quite been as giving to traders as it has been in the years past. Today was another day of the price being restrained to a 30-point range. Because of the economic data announcements throughout the day, some moves had some conviction but were unable to follow through. 

Options with Raghee Horner
Futures with Neil Yeager

Jobless reports prior to market open

Initial and continuing jobless claims were the first reports to hit the market at 8:30 a.m. Eastern. These reports revealed both numbers being elevated in relation to the previous month’s data. After the statistics came out, the market started to move lower in the pre-market ahead of the market opening. The reaction was adverse but not extreme, as the market fall was about 15 points on the S&P 500 futures.

When the opening bell sounded, indexes quickly began to find support above the 4,000 level on the S&P 500 futures. The price across all indexes was moving in tandem and allowed the market to push higher into the S&P U.S. manufacturing and services Purchasing Managers Index (PMI). Data was released at 9:45 a.m. and revealed a contraction in numbers, but this did not stop the market from working its way higher. 

Ultimately there was no continuation of the push after the numbers were released. This was due to the recent price action being stuck in ranges and the data needing to be more significant. PMI can affect the market but has been quickly overshadowed by other reports in the past. When a statement such as the Federal Open Market Committee (FOMC) minutes comes later in the day, the market can remain stagnant regardless of other information.

Between PMI reporting and 2 p.m. Eastern when FOMC minutes would take place, the market was chopping and dropping in the same 30-point range it traded in all day – between 4,005 and 4,035. 

FOMC ends the day with split sentiment

When FOMC finally released its statements, there were both bullish and bearish statements made by Federal Reserve (Fed) speakers. This split sentiment led the market higher from where it was as the event started, but once again, not enough to push through the day’s upper range at 4,035.

All of this coiling in the market will undoubtedly lead to a big move in either direction once the structure breaks. Patience will be crucial as ever, as there have been many traps and fake-outs leading to this sideways action over the last several sessions. 

Tomorrow the market is closed for Thanksgiving and will re-open on Friday the 25th. Market hours will be limited on Friday as it is a half day. The market will open at the regular time of 9:30 a.m. Eastern and close at 1 p.m. Eastern. 

Traders should be aware that Friday could be a low-volume day to end the week because of the holiday and half day. 

Happy Thanksgiving, and enjoy the time off for the holidays!

Stock market closes green 

The Nasdaq and the S&P 500 were positive to close the session. The S&P 500 closed up 0.61%, adding 24 points, while the Nasdaq closed up 0.95%, gaining 1006 points. The Dow Jones followed, closing up 0.28%, adding 94 points.

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