Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!

S&P 500

The market previously rallied up for the past week in anticipation for Friday’s quadruple witching day. Sideways trading occurred as expiration of contracts for all stock index futures, stock index options, stock options, and single stock futures took place.

This Wednesday on June 23rd we have the FOMC meeting, which will give us a direction on where interest rates will be heading. With jobless claims still high and the economy still recovering expect the interest rates to be kept the same however watch for any indication in the wording once the FOMC announcement is made.

Currently, ‘shadow inflation’ has been on the rise as airlines are adding additional subcharges, telecommunications are increasing pricing, and banks are adding additional fees for maintaining accounts. This type of inflation will erode potential recovery and consumer savings.

Looking at the technical level on the 5 minute chart for the S&P 500 Index, we are currently below the January 2010 resistance level which starts at the 1125 level. Breaking this level could mean a huge push upwards as investors and traders return into the markets. However summer has already started so be cautious of low volume trading days ahead and expect days with quick rallies followed quick falls.

On the daily chart of the S&P 500, we are between the 144 and 200 day moving averages of 1110 and 1087. Do not expect any major movements unless we break out of this trading range.

-         If we break above 1110 then expect the January 2010 resistance levels starting a 1125 to hold back the market during these low volume summer months.

-         If we break below 1087 then be wary of picking bottoms in the market as we may be expect to go even lower due to the slow down in manufacturing, increasing jobless claims, the European debt crisis, and the fears of another ‘flash crash’

The Chicago Board Options Exchange (CBOE) Market Volatility Index (VIX) measures options activity within the market and is widely used tracking the S&P 500. A common trading strategy for traders and investors includes a VIX level of 30 or above means an immediate switch from equities to cash. Traders and investors are retreating from the markets and finding safety and protection within the Treasuries, gold, and the dollar.

The Market Volatility Index is currently below 30, which usually means that traders and investors are switching from cash to riskier assets such as equities and other financial instruments. If the volatility breaks through the 25 level then the markets show an influx of equity purchases. The 25 level is a major level of support for CBOE Market Volatility Index as it is the convergence of the 144 and 200 day moving averages. This index must break down below 25 or bounce above 30 for the markets to show a consistent momentum and direction.

Summary of Major Pivot Levels

1219: S&P 500 52 Week High

Technical Levels Natural Support and Resistance

1125: January 2010 Resistance Level

1100: Natural Support Level

1075: Natural Support Level

Technical Levels 5 Minute Chart

1115: 144 Day Fibonacci Moving Average on 5 Minute Chart

1114: 200 Day Fibonacci Moving Average on 5 Minute Chart

Technical Levels Daily Minute Chart

1110: 144 Day Fibonacci Moving Average on Daily Chart

1087: 200 Day Fibonacci Moving Average on Daily Chart

Monday Economic Calendar

No Economic Numbers Scheduled – Watch European and Asian Markets

3 – Month Bill Auction / 11.30 AM

6 – Month Bill Auction / 11.30 AM

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 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 offerings of products and services on their own merits and for suitability to the individual’s personal needs and circumstances.

- 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

Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!

S&P 500

The European markets are plaguing the markets as their debts will hurt the global financial sectors. On the US front the Federal Reserve banks want to raise the discount rate, which is a sign of confidence of recovery within the economy. However jobless claims are still high so any chance of currently raising interest rates are nil.

The S&P 500 index finished as it did yesterday around the natural support level of 1175. Investors and traders maybe covering their shorts the ‘Volcker Rule’ is slowly becoming a reality which limits high-risk trading near July 4th.

The index met resistance due to Monday’s previous high as well as the convergence of the 144 and 200 day moving averages on the 5 minute chart. The S&P 500 index should be trading below the 1190 Monday’s resistance. An upward breakout could possible push the towards the 1110 area.

Looking at the daily chart of the S&P 500, the index is currently trading below the January 2010 resistance level as well as the 144 and 200 day moving averages. Yesterday we mentioned that the S&P 500 will be range bound between 1175 and 1110 as we head towards the slow summer months. The index traded below this range however rallied and finished near the natural resistance level of 1175.

The Chicago Board Options Exchange (CBOE) Market Volatility index (VIX) measures options activity within the market and is widely used tracking the S&P 500. Increasing volatility implies pessimism within the market and stocks sell off as traders seek protection for their assets.

A common trading strategy for traders and investors includes a VIX level of 30 or above means an immediate switch from equities to cash. Traders and investors are retreating from the markets and finding safety and protection within the dollar. As long as we stay above this level expect pessimism as we approach the slow summer months. Currently the VIX is above the 144 and 200 day moving averages on the daily chart. The index is also slightly above 30 so unless it is below this level do not expect a confirmed rally or upside within the equities market.

As long as we are below the 1075 level on the S&P 500 and the market volatility is above 30 expect choppy trading with no confirmed rallies. We still expect the market to be range bound between 1075 and 1100.

Summary of Pivot and Technical Levels

1219: S&P 500 52 Week High

1116: 144 Day Fibonacci Moving Average on Daily Chart

1110: Natural Resistance Level

1190: Monday’s Previous High

1086: 144 Day Fibonacci Moving Average on 5 Minute Chart

1085: 200 Day Fibonacci Moving Average on Daily Chart

1175: Natural Support Level

1069: 200 Day Fibonacci Moving Average on 5 Minute Chart

Wednesday Economic Calendar

Mortgage Applications / 7.00 EST

Durable Goods Orders / 8.30 EST

New Home Sales / 10.00 EST

Petroleum Report / 10.30 est

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 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 offerings of products and services on their own merits and for suitability to the individual’s personal needs and circumstances.

- 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

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

On Thursday the US equity indexes continued it’s May sell off philosophy. All the major indexes were down for the day amplified by the European debt crisis, the oil-spill in the Gulf, and the recent 1000 point crash in the Dow Industrials. After a three day sell off there could be a possible rally due to options expirations tomorrow as well as traders and investors getting out of their short positions prior to the weekend.

The S&P 500 index on the 5 minute chart fell for the third straight session trading below the 144 and 200 day moving averages. The 200 day moving average converge with Wednesday’s previous low at 1101 so expect resistance between 1100 and 1101 going into Friday’s trading day. Commodities are weaker due to the events listed above as well as a possible slowdown in China will drain global growth. Today jobless claims were released and a jump from 25k to 471k didn’t encourage the US equity markets.

Currently the index is below the 200 day moving average on the daily chart. We have told our readers before the S&P 500 is currently undergoing a correction. On the daily chart of the index is currently trading below the January 2010 resistance level of 1121. The first resistance level is 1100 and 1101. Expect the S&P 500 to find resistance breaking the second resistance level between 1117 and 1120 area as it is below the January 2010 pivot level of 1121. We had a three day sell off in equities as we approach Friday’s trading day. Tomorrow expect a mini rally due to options expiration.

The market volatility index (VIX) measures option activity within the market and is widely used tracking the S&P 500. Increasing volatility implies pessimism within the market and stocks sell off as traders and investors are seeking protection for their assets instead of risks.

A common trading strategy for traders and investors includes a VIX level of 30 or above means an immediate switch from equities to cash. Traders and investors are retreating from the markets and finding safety and protection within the dollar. Currently the VIX is above the 144 and 200 day moving averages on the daily chart. As long as we stay above this level expect pessimism as we approach the slow summer months.

Summary of Pivot and Technical Levels:

1219: S&P 500 52 Week High

1101: 200 day Fibonacci moving average on 5 minute chart

1100: Natural Resistance Level

1096: 144 day Fibonacci moving average on 5 minute chart

1127 – 1141: Major resistance level for the S&P for January 2010

1117: 144 day Fibonacci moving average on daily chart

1085: 200 day Fibonacci moving average on daily chart

Friday Economic Calendar:

No Economic Numbers Scheduled

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

Understanding economic activity as well as the direction of the market will lead you to profitable trades. Keep up with our live news feed – Sign up at TraderMongers.com

S&P 500 Pivots

Another positive day for the S&P 500, the Nasdaq, and the Dow as they all traded into positive terrority on the day after of the FOMC announcement. Currently all the major indexes are broke through their natural resistance levels: Dow 11,000. Nasdaq 2500, and S&P 500 1200.

After strong economic earnings and jobless claims falling to 448,000 pushed the indexes higher. The S&P 500 Index is still below Wednesday’s previous high of 1211. Breaking this level would represent a significant upward dash to the 52 week high of 1220.

Friday is the last day in April so expect some end of the month activity with various economic numbers expect. GDP numbers will give us the momentum of the market going into the first quarter of 2010. The market is mostly likely to be weak after the April 15th tax deadline. Since 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. However the daily trend remains quite strong.

The market volatility index fell to 18.44 after nearing the 200 moving average on the daily chart. It reached the 52 week low of 15.23.

Summary of Pivot Levels:

1220: 52 Week High

1211: Wednesday’s Previous High

1203: Friday’s Primary Pivot Level

1200: Natural Support

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