PreMarket Prep Recap: Market Too Quiet For Too Long

Sometimes it's better to observe what's not happening in the markets than trying to figure out why it's up or down. On Friday, it was a perfect example of this with Amazon.com, Inc. AMZN deep in the red.

Amazon Down. Market Holding Up

At the top of the show, the fallout from Amazon's third-quarter miss was being evaluated as to its impact on the overall market and in particular the indexes it's a major component of. PreMarket Prep co-host Dennis Dick's observation was the S&P 500 index and the QQQs weren't down enough to accurately reflect the percentage loss in Amazon.

In other words, the other components of those indexes were holding up well and the weakness in Amazon will be more than compensated by the strength of the remainder.

Quiet And Range Bound Weak

Until today, the S&P 500 index had been range in a tight 33.25 range, which is very unusual for the index. As a result, there was a higher probability of a larger move in today's session. The parameters were revealed for a move to the downside, a breach of Thursday's low (2998.75), which coincided with the pre-market low of 3000.

For a significant move to the upside, a breach of the pair of highs from Monday (3014.25) and Thursday (3015.25) may signal a move to a new all-time-high. It took some time, but the index did penetrate those highs, reached 3026.50 and has backed off.

To Buy Or Not To Buy The Dip In Amazon

Based on the pre-market plunge to $1,617.80 and subsequent rebound in the after-hours and pre-market trading, the hosts of the show were convinced the pre-market low would not be revisited. At that time, it was trading below a major support level at its Oct. 3 low ($1,685.06).

Dennis Dick was looking for more upside if that low could be recaptured.

As it turns out, the open was $12.00 above that major low and after a brief retreat to $1695.00, the issue rallied over $60 to $1,764.21 and has retreated.

Finding Resistance In Verizon After Q3 Beat

Before the open, Verizon Communications VZ announced a third-quarter beat for EPS and sales. As a result, the issue was in the green in pre-market trading.

We could not identify any significant support for the session, but was able to identify an excellent area of resistance; That level was the $61.25 area. The reason being that four of its five previous higher were perched at the area, perhaps indicating a large seller(s) that were exit a large position in that area.

Following a quick dip t $59.21, the issue has rebounded so far the rally has stopped shy of Thursday's high ($61.02), only reaching $60.88, which is just under the major resistance cited above.

Simpler Forex's Raghee Horner Joins The Show

Towards the end of the show, Simpler Forex's Raghee Horner joined the broadcast. She provided insightful comments on overall market as well as the future direction of the U.S. dollar.

Be sure to tune in Monday's show at 8:35 a.m. EST when, CNBC's Tim Seymour of Seymour Asset Management will join the show with his fundamental and technical outlook for the markets.