S&P 500

One week ago we suggested that the market will sell off on Friday due to traders and investors not holding their positions over the weekend. We are currently holding this belief going into this Friday – either the market sells off or trades flat. The rally of the markets today due to strong earnings pushed the dollar lower against the euro as traders took more risk.

During a testimony between Ben Bernanke and the House Financial Services Committee, the Fed Reserve Chairman spoke about further stimulus actions. Looking at the Asia markets China is expected to slowdown and Japan was downgraded by Credit Suisse.

We only rallied to about the same level as last week on the 5 minute chart of the S&P 500 as traders relieved their positions last Friday and bought up their shorts this week.

TO BE CONTINUED WITH CHARTS AND VIDEOS HERE!

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.

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 Live News Feed Article Source

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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

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