Understanding the direction of the market as well as the economic activity will lead you to profitable trades. Keep up with our live news feed and the trend with Tradermongers.com!
S&P 500 Pivots
The S&P 500 index reached a 52 week high today before falling back to negative terrority to 1212. The 1212 level is the 200 moving average on the 5 minute chart. The index made several attempts to stay above Friday’s previous high of 1217 however fell short during afternoon trading. The market was strong in the morning due to Caterpillar’s earnings however fell due to financial regulation talks in Washington.
Currently all the major indexes are above their support levels indication possible economic recovery and sustained growth. The Dow is above the 11,000, the Nasdaq is above 2500, and the S&P500 is above 1200. Unless any of these support levels breaks, expect chopping trading going higher. On the daily chart the S&P has consistently trended higher since early February.
Tuesday’s primary pivot point is 1213 – just above Monday’s close. Expect Tuesday’s market activity to be slow due to the FOMC announcement on Wednesday. The Market Volatility Index has been trending lower since October of 2008 and recently reached a 52 week low of 15.27. Expect the volatility to be tamed around this area as economic recovery and growth reenters the market.
Summary of Pivot Levels:
1219: S&P 500 52 Week High
1217: Friday’s Previous High
1213: Tuesday’s Primary Pivot Level
1212: 200 Moving Average on 5 minute chart
1200: Natural support level
Disclaimer
The content in this website is provided for educational and informational purposes only. We offer no investment advice, and nothing in this material should be construed as such. There is a risk of loss when you invest; past performance is never a guarantee of future performance. Trading is the sole responsibility of the individual. No reader should act on the basis of any matter contained herein without getting appropriate professional advice. Every investor or trader should consider all advice and all offerings of products and services on their own merits and for suitability to the individual’s personal needs and circumstances.
All Right Reserved TraderMongers.com © 2010
-
About the Author:
Shamim Ziyaaudhin is one of the editors of TraderMongers.com a one stop trading news feed source for worldwide traders and investors. Their philosophy is to establish the standard for providing market news feed that is comprehensive, accurate, and concise. Providing technical and fundamental trading setups, economic numbers, and calendar events throughout the trading day. Shamim has a Masters in Business Administration from Fairleigh Dickinson University and holds a degree in Psychology from Rutgers University. Click here to subscribe to Tradermongers E- News
Article Source