The S&P 500 is in No Man’s Land
- Posted by TheArmoTrader
- on June 25th, 2013
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.
$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.
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.blog comments powered by Disqus
Jerry Khachoyan is currently an undergraduate student at UCLA pursuing a degree in Political Science. He started trading in September of 2008. He concentrates on using technical analysis and reading the tape to enter the best risk/reward trades. The stock market to him is one of the greatest inventions by man.
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