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S&P 500 Pivots
The S&P 500 index broke through the natural support of 1200 and stopped at the low of 1183.71. Yesterday the index reached a 52 week high before falling to 1212. Today the trend continues as the Dow and the Nasdaq also fell below their natural support levels of 11,000 and 2500, respectively. The sell off was shortly after Standard & Poor’s downgraded both Greek and Portuguese debt to junk status.
Now the S&P 500 is back below the natural support level of 1200 – the daily chart may indicate the beginnings of a trend change as we reach the ‘Sell in May’ prophecy. The market is mostly likely to be weak after the April 15th tax deadline.
Tomorrow afternoon is the FOMC announcement so expect rates to remain steady as we go through market recovery. Wednesday’s primary pivot is 1192.24 – currently the market is near the same point as it was ten days ago. Unless the FOMC announcement is extremely positive then expect the market to be below the 1200 natural resistance level. Looking at the market volatility index which rallied off its 52 week lows of 15.23 and it is currently around the 200 moving average area on the daily chart.
Summary of Pivot Levels:
1200: Natural Resistance Level
1192: Wednesday’s Primary Pivot level
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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
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