Stock Trading

S&P 500 successfully tested the neck-line of the double bottom. Million dollar question is, will it hold today?

Support and resistance levels are important because once they are breached, they change polarity. What was support becomes resistance, and vice-versa. Having broken through the 1105 resistance level on S&P 500, the 1105 level became support.

Yesterday, and today, we have been trading down to 1105-1110 region. We managed to close above that lower end of that level yesterday. Will that hold today?

If we don’t then, we could retest the 1050-1040 level.

Read the article below to see how Russell 2000 is acting relative to S&P 500 Index.

Equities gave back a decent gap to the upside today, but the level I am watching this week is 1105. 

As you can see, today was a perfect retest of the double bottom in the S&P. If that neckline gives way, further downside is on the way. 

via Blog – Jeff Kohler the Option Addict | Stock and Options Trading. 

 Another good article that makes the case for short-term bullish. As regular readers might have noted, our current view is short-term bullish. Near term resistance on S&P 500 is in the 1165-1175 area.

“The force of the last week’s bullish swing was enough to reverse bearish momentum trends on the S&P 500 and the Dow Jones Industrial Average. Weekly MACDH momentum ticked higher on both of these indices, after six straight weeks of declines. Although the MACDH sits below the zero signal line, we can now say that bearish momentum is declining; the bears are losing control of the underlying market trend.”

RSI has moved above 50 as well across the board, so the bulls have made substantial progress over the last two weeks. We remain cautious, as volume was a bit anemic last week, so we may see some consolidation during the upcoming week as prices fight to break through the highlighted resistance area, however the intermediate-term trend is to the upside.

via Slope Of Hope with Tim Knight.

Another look at the support and resistance levels on S&P 500 index.

As @admin mentioned in an update couple days ago, we closed above the 200 day moving avergage on the S&P 500 index. The S&P 500 emini contract is also above its 200 day moving average. Though it is not visible on the chart below, the area of resistance is 1160-1170 level.

The S&P 500 emini contract is pressing towards yet another probe of key support along the 1100 level, which also doubles as the rising 200-day moving average at 1099.70. As long as that support area contains any forthcoming weakness, with an overshoot into the June 8 up-trendline at 1095, my pattern work will consider all the action since the June 15 high at 1111.50 to be a sideways rest-digestion period ahead of another upleg. If my work proves accurate, then we will look back on the past two sessions as a rest period rather than a serious pullback that worked off the overbought near-term conditions ahead of another powerful upleg. For that reason we are long the Ultra S&P500 ProShares NYSE: SSO in our model portfolio.

via Calm Before Next Climb by Mike Paulenoff – Slope Of Hope with Tim Knight.

As I mentioned my update couple of days ago, I believe S&P 500 is headed to around 1170.

We have very little resistance until we reach 1170. I would be looking to trade stocks on the long side for now.

Below is a link to a CNBC article and video talking about S&P 500 reaching 1165.

The recent declines in the S&P 500 are over for now and the index should rally to 1,165 points, Mark Sturdy, director of Seven Days Ahead, told CNBC Thursday.

“The market is in the grip of this double bottom, the minimum move of which is to 1,165 (points),” Sturdy said.

via CNBC Stock Blog — Charts: S&P to Rally to 1,165 as Pullback Ends – CNBC.