Last post, I showed some support/resistance curves and said:
"Support remains at 1280-1300
There is resistance around 1330"
The next day, Monday 11, 2011, there was some announcement by S&P's rating agency and market gapped down at the open.
Now, I am not gonna get into how useful or useless such belated warning or announcement by an always lagging institution might be -- an institution who completely missed or mis-judged credit worthiness of many banks leading to 2007 top -- no, I won't get into debates like that because, plainly, and simply, I don't care :-)
At Market Time Premium, we deal with price and risk levels.
As it happened, the drop on Monday, whatever the cause, was just a test of the support area I had identified. The test was good and led to a bounce that went through the resistance I had identified
This is an updated version of the chart I posted last week
Support is at 1320 and 1309
After that, I have the same 1280-1300 area of last week as a very significant technical support area
I think that is a much simpler way of playing the market than trying to out-guess the sort of noise that may or may not come out of this rating agency or that
For objective, detailed, multi-time frame analysis, and annotated charts, subscribe to premium content at
Market Time Premium
S&P 500 – May 15, 2012 - Bottom Line: Long term trend is up. Mid-term trend is down. Short-term trend is down Weekly S&P stage is Late Advance (2-C) Daily S&P stage is Strong Decli...
1 year ago