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! Visit our blog at Tradermonger.blogspot.com for charts

S&P 500

End of vacations and back to school hits September as it starts the business year. Crude oil will be reaching its peak in September as hurricane seasons are behind us. Yesterday’s FOMC minutes showed the Fed officials divided over the direction of how to manage the changing Fed balance sheet.

August trading volume did not give the markets the lift it needed and continued to end lower as the month continued. Majority of rallies were short-covering rather than institutional buyers and investors entering the markets. The S&P 500 30 minute chart shows the market moving lower and trading below the 144 and 200 day moving averages. Expect a short-covering rally as we begin the first day of September as we head towards the Labor Day weekend.

On the daily chart of the S&P 500, the market continued to trade below the 144 and 200 day moving averages as we approached the end of August. As institutions and investors return to the markets after the Labor Day weekend and volume picks up expect uncertainty to exist as we approach mid-term elections in November. Markets should continue to trade sideways for the next two months until elections are over.

The Market Volatility Index or VIX track prices that investors are willing to pay for options on the S&P 500, usually to protect themselves against declines in stocks. Currently the VIX trading at the 144 and 200 day moving averages indicating more risky approach towards investments and assets. The thin trading volume in August magnifies moves on the VIX so markets could be less liquid markets than fear-driven. Expect us to be at this range until direction comes back into the markets after the 2010 mid-term elections.

The Chicago Board Options Exchange (CBOE) Market Volatility Index 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 when the index is trading above 30.

Summary of Major S&P Pivot Levels

1219: S&P 500 52 Week High

Technical Levels Natural Support and Resistance

1125: January 2010 Resistance Level

1100: Natural Resistance Level

1075: Natural Resistance Level

1050: Natural Support Level

Technical Levels 30 Minute Chart

1072: 144 Day Fibonacci Moving Average on 5 Minute Chart

1065: 200 Day Moving Average on 5 Minute Chart

Technical Levels Daily Minute Chart

1096: 144 Day Fibonacci Moving Average on Daily Chart

1087: 200 Day Moving Average on Daily Chart

Daily Economic Calendar

Motor Vehicles Sales

Mortgage Applications / 7.00 EST

ISM Mfg Index /10.00 EST

Construction Spending / 10.00 EST

Petroleum Report / 10.30 EST

* Subscribe to our News Feed to get Updates, Trading Strategies Daily, and Sector Stock Lists.

- Technical and pivot levels for the S&P and other indices

- Alerts for 52 highs and lows as well as their respective sister stocks to watch

- Highlights on the economic calendar and trading strategies off those numbers

- Analysis of various sectors of the markets as well as sister stocks to watch

- Much more

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

A casual perusal of the e-mini day trading courses available will leave a potential new trader with sticker shock. It is not unusual to see courses that are priced at $5000 or more. By any measure, this is a high-end purchase for most individuals. Of course, the question is a simple one, why are day trading courses so expensive?

Many trading systems are proprietary in nature and the owners of the system feel obligated to protect the systems and technologies they have developed. As courses become more popular, either through effective marketing or word-of-mouth success stories, the owners of the trading systems are able to command a greater price for their products. Some traders have developed a very recognizable brand name and this allows them to charge a premium price for the product they have developed.

The question a potential new trader must ask himself is whether the value of the course is equal to the premium price the owner of the course is charging. This is a very difficult evaluation to make, as no breakthrough technologies in e-mini day trading have emerged. The fact of the matter is startling; most trading educators use a similar set of oscillators and price movement analysis to determine potential trades. Granted, new oscillators have appeared in recent years, though none have provided that “Eureka” moment many traders are looking for.

Quite simply, trading is a learned skill and learning to recognize potential setups is gained through experience and a basic understanding of the technologies and setups that can result in potentially profitable trades. Needless to say, some trading systems are better than others. But most time-tested trading systems have been around for quite some time and employ similar trading techniques. Oscillators, duel time frame analysis, channel analysis, price movement analysis… these are all common to nearly every trading system currently on the market. I will admit that some trading educators deploy and utilize the information gleaned from charts and indicators and a more effective fashion than others, but there is a striking similarity between most systems on the market.

One common question trading educators are asked is to post their success record for evaluation. I am in sympathy with most trading educators and being hesitant to disclose this sort of information because potential traders enter trading with a very different skill set. One trader may be very adept at identifying and visualizing a range of indicators and price movements in a very effective manner. On the other hand, there are those students who struggle with these sorts of abstractions and have a very difficult time succeeding. In short, all potential traders are not created equal. Some new traders assimilate information very quickly and translate that assimilation into trading success, while others are slower at learning the information and implementing it, and still others are unable to trade effectively under any circumstances.

In short, the price you pay for an e-mini day trading course is directly related to the value a potential investor perceives in the system being promoted. If I were in the market to purchase an e-mini day trading system I would shy away from advertisements claiming bombastic and incredible rates of return. As most seasoned traders know, the e-mini day trading business is not a get rich quick proposition. The real chance of earning 1000% on your money in the first month of trading is remote, at best.

It is not unfair question to ask a trading educator what his or her success rate with students who continue in the trading business might be. Many studies have pegged the failure rate for new traders at nearly 90%. There are many reasons for this, and an explanation for this failure rate is a topic for another article. In my opinion, any success rate near 50% would be a good indicator that the course is reputable.

Still, why the high price for the e-mini day trading courses?

Whether it is brand recognition, celebrity status of the trader, or word-of-mouth recommendation from other traders, most trading educators are going to charge as much as the market will bear. In other words, if trading educators can consistently sell courses in the $5000 range; they will do just that. It is up to the potential student to gauge the value of a trading course and evaluate its potential benefits relative to their current financial situation.

Personally, I feel most trading courses are grossly overpriced for the value they deliver. But I am a longtime trader, and my opinion may be biased as I have seen many of the systems in various shapes and forms throughout the last 25 years. The truth be known, not much has changed in trading in the last 25 years. Yes, some fads in trading have come and gone as the market changes in personality, but most courses employ similar technologies and techniques to achieve their end.

- About the Author: Sign up for our free daily e-mini instructional videos and get a feel for the method and techniques the E-mini Trading Professor employs. The videos are free and there is no obligation so click here and start learning immediately. You can learn to day trade emini contracts at an affordable price using time-tested techniques that give potential traders an excellent chance for success. 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

A weak July consumer confidence fell to a 5-month low offset the latest round of strong corporate earnings. On Wednesday June durable goods orders as well as the weekly mortgage applications and petroleum reports. The Beige Book is expected today which report economic conditions used for the FOMC meetings in 2 weeks. Expect the market to move after the 2pm Eastern Standard Time announcement.

On the S&P 500 on the 60-day chart shows we have been rallying since the beginning of July especially after options expiration last Friday. Expect the market to hit the January 2010 resistance level as we approach the slowest month of the year – August. The volume will not be enough in August to break through the January resistance levels.

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

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

Deflation risk is influencing the markets as lower money supply and credit are affecting both the producer prices and manufacturing sectors. Lower food prices affected the producer price index which is a leading indicator affecting consumer prices. Overall this translates into low interest rates and could be good for profits if money supply and credit is available for growth.

However lower numbers in the manufacturing sector translated into a slowdown in growth. This has been indicated by the lower Empire State and Philly Fed numbers as well as the Industrial Production report. If these manufacturing reports announced higher numbers and PPI was low then we could have a positive and sustained growth. But lower numbers in manufacturing and a lower PPI makes a case for deflation risk.

The S&P 500 opened up lower breaking Wednesday’s previous low before rallying at the end of the day. Looking at the 5 minute chart we are in a trading range making three attempts flirting with the 1100 level on the S&P 500.

On the daily chart of the S&P 500 we are trading between the cushion area of 144 and 200 day moving averages as traders and investors are cautious looking ahead especially with the upcoming mid-term elections, uncertainty with European debt, and the current Gulf Oil Spill.

The Market Volatility Index (VIX) has been active due to the seasonal selling trend of the ‘Sell in May’ philosophy however seems to stabilizing after the Fourth of July weekend and the anticipation of second quarter 2010 earnings season. Currently the VIX is at the 144 and 200 day moving averages indicating a steady cautiousness between traders and investors.

The Chicago Board Options Exchange (CBOE) Market Volatility Index 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.

Summary of Major S&P 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

1089: 144 Day Fibonacci Moving Average on 5 Minute Chart

1188: 200 Day Moving Average on 5 Minute Chart

Technical Levels Daily Minute Chart

1102: 144 Day Fibonacci Moving Average on Daily Chart

1087: 200 Day Moving Average on Daily Chart

Daily Economic Calendar

Consumer Price Index / 8.30 AM EST

Consumer Sentiment / 9.55 AM EST

* Subscribe to our News Feed to get Updates, Trading Strategies Daily, and Sector Stock Lists.

- Technical and pivot levels for the S&P and other indices

- Alerts for 52 highs and lows as well as their respective sister stocks to watch

- Highlights on the economic calendar and trading strategies off those numbers

- Analysis of various sectors of the markets as well as sister stocks to watch

- Much more

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

Everywhere you look in the forex world it seems like all people are talking about is the Forex Trading Scalper. And frankly… I’m not surprised.

After all… how often does a completely automated forex solution make profitable trades 98% of the time?

I can’t say for certain… but I sure don’t remember anything else coming CLOSE to those kinds of numbers.

But it’s not just the amazing low-risk trades it makes that forex traders all over the world are in love with.

It’s also how easy it is to set up and use.

Let me explain…

If you’ve been in this game for any length of time… you’ll know how notoriously difficult some of these “Electronic Assistants” (EAs) can be to set up.

You have to set all kinds of variables… punch in all these numbers… and follow some confusing-as-heck manual.

It’s like these guys think every forex trader is a nuclear physicist!

And that’s why I love the Forex Trading Scalper.

=>> The Official Forex Trading Scalper Website

See… the Forex Trading Scalper is the exact opposite of those confusing EAs.

It comes with a crystal-clear manual explaining EXACTLY how to “plug it in” and start making money from the forex market.

Like Joseph says on his web page… you don’t need ANY previous forex experience.

In fact… if it takes you more than 15 minutes to get it fully “locked and loaded”… I’ll be pretty surprised.

If you’re sick of struggling with confusing statistics… unfathomable charts… and impenetrable jargon… Forex Trading Scalper may just be your answer.

But remember… there are only 500 copies up for grabs.

And with perks like this… they will NOT last.

Don’t miss out – order your copy (and get an immediate download) of the Forex Trading Scalper here: =>> The Official Forex Trading Scalper Website

- About the Author:

http://www.businesstools.tk

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 market struggled to find direction amidst uncertainty weighing on Europe and second quarter 2010 earnings season. Many traders and investors took profits in the morning before the S&P continued its trend just above Friday’s previous high.

Before the second quarter earnings season started the S&P 500 rallied just below the 200 day moving average on the daily chart of 1086. The results of the second quarter earnings could push the market higher if the numbers are better than expected. However any market leader having a bad second quarter could push an industry sector lower while another sector leader rise higher.

For example Walmart could lead the retails sector higher if second quarter earnings are better than expected and the outlook remains positive. However technology giant Apple may suffer lower second quarter earnings and push the other tech stocks lower.

The Market Volatility Index has been active due to the seasonal selling trend of the ‘Sell in May’ philosophy. If the index is above 30 then traders and investors are switching from riskier assets to cash. Lower than 30 especially breaking through the two major moving averages of 144 and 200 means that people are buying riskier assets and financial instruments.  The Market Volatility Index seems to stabilizing after the fourth of July weekend and the anticipation of second quarter 2010 earnings season.

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.

Summary of Major S&P 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

1073: 144 Day Fibonacci Moving Average on 5 Minute Chart

1171: 200 Day Moving Average on 5 Minute Chart

Technical Levels Daily Minute Chart

1102: 144 Day Fibonacci Moving Average on Daily Chart

1086: 200 Day Moving Average on Daily Chart

Daily Economic Calendar

International Trade / 8.30 AM EST

Treasury Budget / 2.00 PM EST

* Subscribe to our News Feed to get Updates, Trading Strategies Daily, and Sector Stock Lists.

- Technical and pivot levels for the S&P and other indices

- Alerts for 52 highs and lows as well as their respective sister stocks to watch

- Highlights on the economic calendar and trading strategies off those numbers

- Analysis of various sectors of the markets as well as sister stocks to watch

- Much more

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

Review of The Daily Market Advantage System

A lot of people are very frustrated about how the stock market has been moving lately. It doesn’t seem to make any sense, does it? One day there will be bad news, but the market will go up! Then another day the market will go down for seemingly no reason whatsoever.

Whether you’re an active trader, or you just have some capital in the stock market, you can lose a lot of money very quickly if you don’t know exactly what you are doing and if you are not careful with the trading decisions you make. In this review, I’ll introduce you to this system that’s been helping me for quite some time now, to predict the market, place profitable trades and win big. This system could also help you out, should you choose to give it a try.

If you’re buying and selling stocks the way I see most people do, then you might just be gambling and not trading! There is a huge difference between the two. You have to base your trading decisions on sound analysis which would enable you reduce to a greater degree, the gambling aspects involved in your trades.

You need an accurate, effective trading technique and a good data analyzing system that will maximize your profits and minimize your loss possibilities as much as possible. You need a system that will take the guesswork out of your trading equation and enable you make wise decisions based on actual facts and data.

The good news is: NOW you can get access to such analyzed data that will enable you gain an advantage over 99% of other participants in the market. I personally used this system and it currently gives me an advantage over 99% of other traders, and to say the truth, I wouldn’t trade without it!

The system I’m talking about is called the Daily Market Advantage. The guys at the Daily Market Advantage analyze S&P, DOW and Nasdaq in addition to other technical analysis including but not limited to (Volume, VIX, Fibinacci and Daily moving averages).

The Daily Market Advantage Analysis and Reviews are very helpful to making sure you’re on the right track and making the best trades each day. This is ESPECIALLY valuable considering the current volatility of the market. It will really give you an added boost of confidence to see Dave’s daily market analysis, and see exactly WHAT trades they are making.

There are some HUGE opportunities in the market right now! Yes, even in this volatile markets, you can make huge profits if you have the right information and know what you are doing. I’m convinced that the majority of retail investors are going to be on the WRONG side of these good trading opportunities that are up right now.

This system has been helping me a lot, and will do same for you. I recommend signing up for your 30-day trial of the Daily Market Advantage today. This information can literally save your portfolio from disaster, by keeping you above the average retail investors, and giving you an advantage and a competitive edge in the market.

If you want to be a smart trader (and thus, not a gambler), I recommend signing up for this advantage today:

Click here ==> The Daily Market Advantage System

The link above will take you to a special 30-day trial of The Daily Market Advantage System. Give it a try, and you’ll see what I mean!

- About the Author: Try the Daily Market Advantage Risk Free For 30 days, and asses the effectiveness of the system for yourself. Start making profitable trades and safe your portfolio from disaster, thanks to Dave’s daily market analysis.Click on the following link to: Get Your Special 30 Days Trail of The Daily Market Advantage! 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 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 S&P 500 index is currently trading between these natural support and resistance levels: 1050, 1075, and the 1100. We are also trading above the 200 day moving average on the 5 minute chart at 1073. Do not expect a break below the 1075 level on Friday due to the support levels provided by both the 144 and 200 day moving averages. The markets will most likely trade sideways going into Friday’s trading.

On Thursday the S&P 500 ended the trade just above the 1085 200 day moving average on the daily chart. Expect sideways trading as we push into Friday because we are still below the 144 day Fibonacci moving average of 1111. Until we break above this level do expect a confirmed rally or recovering especially throughout these low-volume trading summer months. We still believe that any positive news is considered a temporary rally as move into August which is considered the slowest trading month.

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.

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 volatility index is just above 30.00 as of today so traders and investors may rethink their short positions or continue retreat to safer assets.

However due to the low volume in the recent rally and liquidation of mutual fund investors due to frightening instances such as the ‘flash crash,’ European debt crisis and BP Oil Spill expect volatility will return and traders will prey and make money on both ends. Traders will buy when investors are fearful and sell when they are euphoric and confident.

Summary of Pivot and Technical Levels

1219: S&P 500 52 Week High

1111: 144 Day Fibonacci Moving Average on Daily Chart

1100: Natural Resistance Level

1090: Important Pivot Level

1085: 200 Day Fibonacci Moving Average on Daily Chart

1075: Natural Resistance Level

1074: 144, 200 Day Fibonacci Moving Average on 5 Minute Chart

1073: 200 Day Fibonacci Moving Average on 5 Minute Chart

1050: Natural Support Level

Friday Economic Calendar

Retail Sales / 8.30 EST

Consumer Sentiment / 9.55 EST

Business Inventories / 10.00 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 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

Fears of the European debt crisis continues to mount however many traders and investors believe that the US will recover at a much faster pace. Ben Bernanke will be testifying tomorrow before the Committee on the Budget, US House of Representatives however today he mentioned to be ‘cautious on the US recovery.’ The Beige Book will be released tomorrow however many believe that the FOMC will keep interest rates low for a while. The dollar lost ground to the euro due to purchases of equities that rallied the market.

We rallied above yesterday’s 144 day moving average on the 5 minute chart at 1058 so we expect to finish above this level. The S&P 500 took a breather today after two days of declines and rallied near the 200 day moving average of 1062 on the 5 minute. Expect the markets to be in a narrow trading range within these low volume trading months.

We expected the markets will be in a tight trading range between 1075 and 1100 however the lower the indices trend the trading range decreases has well. We now expect to be within a trading range between 1025 and 1075

On Thursday the 1071 level and 1075 will provide adequate resistance levels while the 1050 will provide a natural support level for the S&P 500. The 1071 was Tuesday’s previous high and the 1075 is the natural resistance level.

On Tuesday we had a retracement to the 1050 area which we reached in early February. This second attempt could break this area due to the low volume trading during the summer months as well as the issues facing Europe sovereign debt and the BP oil crisis. However we broke through the 1050 level only to rally at the end of the day to 1062.

We are trading below the 200 day moving average on the daily chart (1085) so expect any positive news to be a temporary rally as the volume dries up as me move along towards August – the slowest trading month.

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.

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 volatility index is above 30.00 as of so traders and investors may maintain their short positions and retreat to safer assets.

However due to the low volume in the recent rally and liquidation of mutual fund investors due to frightening instances such as the ‘flash crash,’ European debt crisis and BP Oil Spill expect volatility will return and traders will prey and make money on both ends. Traders will buy when investors are fearful and sell when they are euphoric and confident.

Summary of Pivot and Technical Levels

1219: S&P 500 52 Week High

1111: 144 Day Fibonacci Moving Average on Daily Chart

1100: Natural Resistance Level

1090: Important Pivot Level

1085: 200 Day Fibonacci Moving Average on Daily Chart

1075: Natural Resistance Level

1063: 200 Day Fibonacci Moving Average on 5 Minute Chart

1058: 144 Day Fibonacci Moving Average on 5 Minute Chart

1050: Natural Support 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 Article Source