The S&P 500 is in No Man’s Land

The S&P 500, while off the highs (about 6%), is still sitting on about 11% gains year-to-date. However, at the moment, we are really in no-mans lands. We are below the all-important 1600 level, and are yet at no major support. Now, this does not mean we have to sell off more, but it does suggest a more cautious-tone for longs/bulls.

The Chart

$SPX daily chart

As you see, the ~1600 area is pretty important. Not only is it a major psychological level, but more importantly, it also has shown in the past that it matters (resistance at first then support). Until we reclaim and close above it on a weekly basis (with some conviction, preferably) , I am going to lean bearish-neutral. Long-term trend is up, but after a great run YTD, one has to be cautious to be blindly long/a bull here.

What I’m watching for as well is support at the 1540 ish area if we get down there. Anywhere in between 1540 and 1600 is pretty much no-mans land. Below 1540 I start to get worried and start looking at probably ~1465 ish and the 200 day moving average.

SPXdaily

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tags: $SPX $SPY $DJIA $DIA

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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