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 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 Tuesday all the major indexes were down for the day. ‘Sell in May and go away’ theme was amplified with the European debt crisis, the oil-spill in the Gulf, and the recent 1000 point crash in the Dow Industrials. Commodities are taking a hit as copper is going low and gold is finding ground.

Gold hit a record price in dollars of $1,249 last week. Gold imports have been increasing in India prior to April and May as they prepare for a million wedding ceremonies to be held during that time period. However gold fell short 1.1% falling $13.10 to $1215 as traders and investors are retreating from the markets and finding safety within the dollar. Crude oil is finding similar wear as it is trading around $68 a barrel with the stronger dollar. However crude oil is falling 25% faster than gold according the Dennis Gartman, editor of the Gartman letter.

The S&P 500 index on the 5 minute chart shows a downward trend on Tuesday trading below its moving averages as well as January 2010 support levels. Expect the market to go sideways unless it is given direction by today’s FOMC minutes.

We have told our readers before the S&P 500 is currently undergoing a correction. The seasonal trading strategy of ‘Sell in May and go away’ is currently strong. On the daily chart of the S&P 500 we are currently trading below the January 2010 support level. Expect some support around this area unless the bears take over the market and push the index below the 144 and 200 day moving averages on the daily chart.

The market volatility index 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. Currently the market volatility 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

1150: Natural Support Level

1134: 144 day Fibonacci moving average on 5 minute chart

1131: 200 day Fibonacci moving average on 5 minute chart

1127 – 1141

Major resistance level for the S&P for January 2010

1118: 144 day Fibonacci moving average on daily chart

1084: 200 day Fibonacci moving average on daily chart

Wednesday Economic Calendar:

Mortgage Applications / 7.00 EST

Consumer Price Index / 8.30 EST

Petroleum Report / 10.30 EST

FOMC Minutes / 14.00 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 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.

- 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 Friday the market indexes continued its downtrend stride as economic data is overshadowed by concerns on European sovereign debt due to the PIGS: (Portugal, Italy, Greece, and Spain) as well as the ongoing Goldman Sachs investigation. The S&P 500 index market fell another 17 points in addition to the 50 point crash on Thursday. The continued sell off takes all the gains made in 2010. The euro rose slightly against the dollar as traders who shorted the euro took money off the table before the weekend.

The PIGS crisis is pushing the possibility of the Federal Reserve raising interest rates faster than its European counterparts. However it does not seem like a viable option. Looking at the technicals, Monday’s primary pivot point is 1113. Currently the market is below this pivot point as well as the 144 and 200 day moving averages on the 5 minute chart.

As we have told our readers before the S&P 500 is currently undergoing a correction. It has lost nearly all the gains made in 2010. The index is currently below the 1127 level where it was back in mid January. The market continues to sell off due to the uncertainty of the Goldman Sachs probe leading the way for new financial regulations in the near future as well as the crisis with the European markets. Breaking the 200 day moving average of 1078 on the S&P daily chart would definitely cause a continued slide in the market.

The seasonal trading strategy of ‘Sell in May and go away’ is currently ringing true. The market volatility index hit 40.95 above what the index was last year. The index recently hit a 52 week low last month of 15.23. On the daily chart the market volatility traded above the 144 and 200 moving averages. These moving averages which were resistance levels have become support levels. The index continues to increase as traders sell off from equities

Summary of Pivot and Technical Levels:

1219: S&P 500 52 Week High

1164: 55 day Fibonacci moving average on 5 min chart

1150: Natural Support Level

1127 – 1141

Major resistance level for the S&P for January 2010

1136: 55 Fibonacci MA on 5 min chart

1120.5: Friday Primary Pivot Point

1114: 144 day Fibonacci moving average on 5 min chart

1113: Monday Primary Pivot Level

1111: Friday’s Previous Close

1078: 200 day Fibonacci moving average on 5 min chart

Friday Economic Calendar:

Bank of England Interest Rate Announcement

Speakers:

Ben Bernanke

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 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

We have mentioned previously, uncertainty with further regulatory agencies could cool down Wall Street as the result of Goldman Sachs probe. The market is most likely to be weak after the April 15th tax deadline. All the major indexes fell below their natural support levels. Dow Industrials finished off below 11,000, Nasdaq is below 2500, and the S&P 500 is down to 1174 regardless of the positive earnings reported on Tuesday, May 4th.

The S&P 500 broke through three previous lows within the last three days as well as the natural support of 1200. The index paused near the 55 Fibonacci moving average on the 5 minute chart.

Euro traded below $1.30 for the first time since April 2009 due to long term concerns over the Eurozone sovereign debt. The US dollar soared as investors and traders rushed to safety out of the markets. This event is pushing the possibility of the Federal Reserve raising interest rates faster than its European counterparts.

European markets suffering due to various weak countries such as Greece, Portugal, and Spain have also played their part today within bringing a weak global economy. As we approach the seasonal trading strategy of ‘Sell in May and go away’ we expect the market to have a correction or consolidate around the 1200 level before finding direction.

Looking at the market volatility index which has been trending lower since October of 2008 and recently reached a 52 week low of 15.23 – on Monday the index is approaching the 144 and 200 moving averages on the daily chart. The market may be looking to sell off due to the uncertainty of the Goldman Sachs probe leading the way for new financial regulations in the near future as well as the crisis with the European markets. On Tuesday market volatility is currently above the 144 and 200 moving averages on the daily chart and will most like begin to trend higher.

Summary of Pivot Levels:

1219: S&P 500 52 Week High

1208: Friday’s Previous Low

1200: Natural support level

1199: 144 and 200 Moving Averages

1193: Last Thursday’s Previous Low and

55 Fibonacci MA on Daily Chart

Wednesday economic calendar includes: mortgage applications, crude oil report, and ISM Non-manufacturing index.

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